Finance
A Mississippi commercial property loan comes due in 5 years with a 'balloon payment.' This means:
AMonthly payments increase exponentially
BAfter 5 years, the remaining loan balance is due in full — the borrower must refinance, sell, or pay off the balloon✓ Correct
CThe loan automatically renews at market rates
DThe borrower must make extra payments if market values increase
Explanation
A balloon payment loan requires a large lump-sum payment at maturity. Commercial loans commonly have 5, 7, or 10-year terms with balloon payments.
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