Finance
A balloon mortgage is characterized by:
AIncreasing monthly payments over the loan term
BRelatively low payments for a set period followed by a large lump-sum payment at the end of the term✓ Correct
CAn adjustable rate that changes monthly
DPayments that include only interest for the full term
Explanation
A balloon mortgage has lower scheduled payments (often based on a longer amortization period), but the remaining balance becomes due in a large 'balloon' payment at the end of a shorter specified term.
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