Finance
In Louisiana, a 'balloon mortgage' means:
AA mortgage with payments that decrease over time
BA mortgage with regular payments that do not fully pay off the loan, requiring a large lump sum payment at the end✓ Correct
CA mortgage insured by the state against default
DA mortgage with no down payment requirement
Explanation
A balloon mortgage has regular payments (often interest-only or partially amortizing) that do not fully retire the debt, with the remaining balance due in full at the end of the loan term as a lump sum 'balloon' payment.
People Also Study
Related Louisiana Questions
- An 'amortizing' mortgage loan in Louisiana means:Finance
- A Louisiana buyer is approved for a maximum DTI of 43%. Their gross monthly income is $6,000. Their existing monthly debt payments are $650. What is the maximum additional monthly mortgage payment they can qualify for?Real Estate Math
- A Louisiana buyer obtains a $180,000 loan at 4.5% annual interest. The monthly interest-only payment is:Real Estate Math
- A Louisiana investor finances $240,000 at 5% annual interest. After the first year's payments, the loan balance has been reduced by $5,000 in principal. The amount paid in interest during the first year was approximately:Real Estate Math
- In Louisiana, a 'recourse loan' means that if the borrower defaults and the foreclosure sale proceeds don't cover the debt:Finance
- In Louisiana, a 'dation en paiement' (giving in payment) used to resolve a mortgage default means the borrower:Property Ownership
- A Louisiana borrower obtains a $200,000 mortgage at 6.5% interest for 30 years. The monthly principal and interest payment is approximately $1,264. After making payments for 5 years, the borrower still owes approximately $186,000. The equity in the home (purchase price $240,000, current value $255,000) is approximately:Finance
- An 'acceleration clause' in a Louisiana mortgage means:Contracts
Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
Study This Topic
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →