Finance
Which of the following best describes a 'balloon mortgage'?
AA mortgage with increasing monthly payments
BA mortgage with regular payments and a large lump-sum payment due at the end of the term✓ Correct
CA mortgage that allows the borrower to skip payments
DA mortgage that adjusts annually based on an index
Explanation
A balloon mortgage has lower regular payments (often interest-only or partially amortizing) with the remaining principal balance due in full as a large 'balloon' payment at the end of the loan term.
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