Finance
Which of the following best describes a balloon mortgage?
AA. A loan where payments increase over time
BB. A loan with a large final payment due at the end of a relatively short term✓ Correct
CC. A loan with interest-only payments throughout
DD. A loan guaranteed by a government agency
Explanation
A balloon mortgage has regular periodic payments but requires a large lump-sum payment at the end of the loan term, often because it amortizes over a longer period than its actual term.
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