Finance
A balloon mortgage requires the borrower to:
AMake larger payments each year
BPay a large lump sum at the end of a shorter term✓ Correct
CMake interest-only payments for the entire term
DMake no payments for the first five years
Explanation
A balloon mortgage features regular payments (often lower) for a set period, followed by a large 'balloon' lump-sum payment of the remaining principal at the end of the term.
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