Finance
What is a 'balloon mortgage' in Oregon real estate?
AA mortgage where payments increase over time
BA short-term loan with regular payments that do not fully amortize the balance, requiring a large lump-sum payment at the end✓ Correct
CA mortgage with no down payment requirement
DA loan secured by multiple Oregon properties
Explanation
A balloon mortgage requires regular monthly payments (often based on a 30-year amortization schedule) but has a term of only 5–10 years, at which point the remaining principal balance (the 'balloon') is due in full. Borrowers typically refinance or sell before the balloon date. Oregon commercial and seller-financed properties sometimes use balloon mortgages.
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