Finance
Which of the following best describes a 'balloon mortgage'?
AA mortgage with no monthly payments
BA mortgage with level payments over 30 years
CA mortgage with smaller regular payments followed by one large lump-sum payment at the end of the loan term✓ Correct
DA mortgage insured by the FHA
Explanation
A balloon mortgage features smaller periodic payments (often calculated on a long amortization) with a large final 'balloon' payment due at the end of a shorter term (e.g., 5 or 7 years).
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