Finance

A North Dakota commercial mortgage 'balloon payment' is typically due:

AMonthly with the regular payment
BAt the end of the loan term (maturity date)✓ Correct
CAfter the first year only
DWhen the tenant vacates

Explanation

A balloon payment is a large lump sum payment due at the end of a loan term. Commercial mortgages often have 5, 7, or 10-year terms with a balloon due at maturity, even though payments are calculated on a 25-30 year amortization.

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