Finance

In Indiana, a balloon mortgage payment refers to:

AA payment that adjusts annually with the market rate
BA large lump-sum payment due at the end of the loan term✓ Correct
CThe initial down payment on a property
DMonthly escrow payments for taxes and insurance

Explanation

A balloon mortgage has relatively small regular payments but a large final payment (the 'balloon') due at the end of the loan term. Borrowers often refinance or sell before the balloon comes due.

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