Finance
In New York, a 'balloon mortgage' is characterized by:
APayments that increase over time
BRegular periodic payments followed by a large lump-sum payment due at the end of the loan term✓ Correct
CAn interest rate tied to inflation
DMonthly payments that decrease over time
Explanation
A balloon mortgage has a shorter term than a fully amortizing loan. The borrower makes regular (usually lower) payments during the term, then owes a large 'balloon' payment of the remaining principal at maturity.
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