Finance
In Tennessee, a 'balloon mortgage' is characterized by:
APayments that increase over time
BA large lump-sum payment due at the end of a relatively short loan term✓ Correct
CNo principal payments during the loan term
DVariable interest rates that adjust monthly
Explanation
A balloon mortgage has a large lump-sum 'balloon' payment due at the end of the loan term. The periodic payments may be based on a longer amortization schedule, but the remaining balance becomes due at the balloon date.
Related Tennessee Finance Questions
- A real estate investment trust (REIT) allows individuals to:
- The concept of leverage in real estate investing means:
- The Dodd-Frank Wall Street Reform and Consumer Protection Act created the CFPB, which regulates:
- A Tennessee buyer who cannot qualify for standard conventional financing due to recent foreclosure may be eligible for an FHA loan after a waiting period of at least:
- The Community Reinvestment Act (CRA) requires federally insured banks to:
- A Tennessee borrower who is refinancing their primary residence has a federally mandated right of rescission period of:
- A construction-to-permanent loan is a financing arrangement in which:
- An 'origination fee' paid to a mortgage lender is compensation for:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →