Finance
A balloon mortgage requires:
AIncreasing monthly payments over the life of the loan
BA large lump-sum principal payment at the end of a relatively short loan term✓ Correct
CMonthly payments that cover only interest
DA down payment of 50% or more
Explanation
A balloon mortgage features regular (often lower) monthly payments for a set period, followed by a large lump-sum 'balloon' payment of the remaining principal balance at the end of the term.
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