Finance
Which of the following best describes a 'balloon mortgage'?
AA loan with increasing monthly payments
BA loan with smaller regular payments and a large lump sum due at the end✓ Correct
CA loan with no down payment
DA loan with a fixed rate and 30-year term
Explanation
A balloon mortgage has relatively small periodic payments with a large lump-sum (balloon) payment due at the end of the loan term, often 5–7 years.
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