Finance
A balloon mortgage is best described as:
AA loan with payments that increase over time
BA loan with a large lump-sum payment due at the end of a shorter term✓ Correct
CA loan with no interest for the first five years
DA government-backed loan program
Explanation
A balloon mortgage has regular monthly payments (often based on a 30-year amortization) but requires the remaining balance to be paid in full at the end of a shorter term, such as 5 or 7 years.
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