Finance
A 'balloon mortgage' requires the borrower to:
AMake larger payments each month
BPay the remaining loan balance in a lump sum at the end of a short term✓ Correct
CPay interest only with no principal reduction
DMake payments based on a 15-year amortization
Explanation
A balloon mortgage has periodic payments (often calculated on a long amortization) but requires the remaining balance to be paid in full at the end of a shorter term (e.g., 5 or 7 years).
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