Finance
A balloon mortgage features:
APayments that increase each year at a set rate
BRegular payments over the loan term with a large lump sum due at the end✓ Correct
CInterest-only payments for the entire loan term
DNo payments required until the property is sold
Explanation
A balloon mortgage has regular (often fully amortized) payments for a specified period, followed by a large lump-sum 'balloon' payment of the remaining principal. Borrowers must refinance or pay off the balance at maturity.
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