Finance
A balloon mortgage requires the borrower to:
AMake increasing payments each year
BPay off the remaining balance in a large lump sum at the end of the loan term✓ Correct
CPay only interest with no principal reduction
DMake biweekly payments to reduce the principal faster
Explanation
A balloon mortgage involves regular payments (often interest only or partially amortized) with the remaining balance due in a large lump sum (balloon payment) at the end of the term.
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