Finance
In Maine, a 'balloon mortgage' is one where:
AMonthly payments increase each year
BA large lump sum payment is due at the end of a shorter loan term✓ Correct
CThe interest rate adjusts monthly
DThe lender can demand payment at any time
Explanation
A balloon mortgage has lower monthly payments (often calculated as if the loan were amortized over 30 years) but requires a large 'balloon' payment of the remaining principal balance at the end of a shorter term (e.g., 5 or 7 years).
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