Finance
Under Montana law, a 'balloon mortgage' requires the borrower to:
AMake graduated payments that increase over time
BPay the full remaining principal balance at the end of a specified term, even if not fully amortized✓ Correct
CMake interest-only payments for the entire loan term
DRefinance the loan every 5 years automatically
Explanation
A balloon mortgage requires a large lump-sum payment of the remaining principal balance at the end of the loan term. The loan may be amortized over 30 years but have a 5- or 7-year balloon payment.
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