Finance
In New Mexico, a 'balloon payment' mortgage requires the borrower to:
AMake larger payments at the beginning of the loan
BMake regular (usually lower) payments for a set period, then pay the entire remaining loan balance in a lump sum at maturity✓ Correct
CPay the loan off in equal installments over 30 years
DMake interest-only payments for the entire loan term
Explanation
A balloon mortgage features lower payments for an initial period (e.g., 5-7 years) based on a longer amortization schedule, then requires full repayment of the remaining balance (the balloon) at maturity — requiring refinancing or sale to satisfy the balloon.
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