Finance
In South Carolina, what is a 'balloon payment' mortgage?
AA mortgage that increases in payment size over time
BA mortgage with lower initial payments that concludes with a large lump-sum payment✓ Correct
CA mortgage that allows the borrower to skip payments
DA government-subsidized mortgage for low-income buyers
Explanation
A balloon mortgage has relatively small periodic payments followed by a large lump-sum (balloon) payment due at the end of the loan term. These can be risky if the borrower cannot refinance or pay the balloon when due.
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