Finance
A balloon mortgage requires:
AIncreasing monthly payments over the life of the loan
BA large lump-sum payment at the end of a relatively short loan term✓ Correct
CMonthly payments that cover interest only throughout the term
DAn adjustable rate that resets annually
Explanation
A balloon mortgage features regular payments (often interest-only or partially amortizing) for a set period, after which the remaining balance (balloon payment) is due in full.
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