Finance

What is a balloon mortgage?

AA mortgage with increasing monthly payments
BA mortgage with regular payments followed by a large final payment✓ Correct
CA mortgage with no down payment required
DA mortgage with interest-only payments throughout

Explanation

A balloon mortgage has regular (often interest-only or partially amortizing) payments for a set period, followed by a large 'balloon' payment of the remaining principal balance at maturity.

Related Ohio Finance Questions

Practice More Ohio Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Ohio Quiz →