Finance
A balloon mortgage in Minnesota requires:
AMonthly payments that increase each year
BA large lump-sum payment of the remaining balance at the end of the loan term✓ Correct
CNo payments for the first five years
DThe interest rate to adjust annually
Explanation
A balloon mortgage has regular monthly payments (often based on a 30-year amortization) but the entire remaining balance is due as a lump sum at the end of a shorter term (commonly 5, 7, or 10 years). The borrower must pay off or refinance the balloon payment at maturity.
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