Finance
A balloon mortgage requires the borrower to:
AMake equal payments throughout the loan term
BPay a large lump sum at the end of a shorter loan term✓ Correct
CIncrease payments each year
DMake interest-only payments for the entire term
Explanation
A balloon mortgage has smaller regular payments for a set period (e.g., 5 or 7 years), after which the entire remaining balance is due in a single large 'balloon' payment.
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