Finance
A balloon mortgage in Virginia has payments based on a 30-year amortization, but the entire remaining balance is due in 7 years. The payment due at year 7 is called:
AA prepayment penalty
BA balloon payment✓ Correct
CA deficiency judgment
DAn acceleration payment
Explanation
A balloon payment is the large lump-sum payment due at the end of a balloon mortgage term. The borrower must pay off the remaining balance, refinance, or sell the property.
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