Finance
A 'balloon mortgage' in Texas requires the borrower to:
AMake increasing payments each year until the loan is paid off
BMake regular payments followed by a large final payment (balloon payment) that pays off the remaining balance✓ Correct
CPay only interest for the entire loan term
DPay off the loan if property values increase by 20%
Explanation
A balloon mortgage has regular (often lower) monthly payments for a set period, after which the entire remaining balance is due in one large 'balloon' payment. Borrowers often plan to refinance or sell before the balloon comes due. If unable to do so, they may face foreclosure.
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