Finance
What is a 'balloon mortgage' in Florida?
AA mortgage with payments that increase over time
BA mortgage where the entire remaining balance is due in a lump sum at the end of a shorter term✓ Correct
CA mortgage with an interest rate tied to a balloon index
DA high-risk subprime mortgage product
Explanation
A balloon mortgage has regular payments (often based on a 30-year amortization) but requires the entire remaining principal balance to be paid in a lump sum ('balloon payment') at the end of a shorter term — commonly 5, 7, or 10 years.
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