Finance
A 'balloon payment mortgage' in Pennsylvania has which characteristic?
AMonthly payments that increase annually by a fixed amount
BA final payment much larger than the regular monthly payments, due at the end of the loan term✓ Correct
CNegative amortization throughout the loan
DVariable interest with no lifetime cap
Explanation
A balloon mortgage has regular monthly payments (often calculated on a longer amortization, like 30 years) but the remaining loan balance becomes due in full at the end of a shorter term (e.g., 5 or 7 years). The large final 'balloon' payment requires refinancing, sale, or paying off the balance.
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