Community Trust Bank provides Devlin with a mortgage to buy a home. The rate of interest is fixed for seven years. At the end of that period, a large payment for the entire balance of the mortgage loan is due. This payment is

Question

Quizplus · Accepted Answer

A balloon payment is a large payment due at the end of a loan term, typically used in cases where the borrower expects to have the means to pay off the balance in full at that time. This is a common feature of certain types of mortgages, particularly those with fixed interest rates for a specific period of time. Community Trust Bank is providing Devlin with a mortgage that includes a balloon payment.

Community Trust Bank Provides Devlin with a Mortgage to Buy