Finance
A balloon mortgage requires:
AIncreasing monthly payments over time
BA large lump-sum payment at the end of the loan term✓ Correct
CZero interest for the first five years
DMonthly payments based on a 30-year schedule with no final lump sum
Explanation
A balloon mortgage typically has lower monthly payments based on a long amortization schedule, but requires the remaining balance to be paid in full at the end of a shorter term.
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