a ba1lloon payment equal to a mortgage's original loan amount is a characteristic of a:
A) bullet mortgage.
B) fully amortizing mortgage.
C) partially amortizing mortgage.

Question

Quizplus · Accepted Answer

A balloon payment equal to the original loan amount is a characteristic of a bullet mortgage, where the borrower pays smaller monthly payments during the term of the mortgage and a lump sum payment at the end. Fully amortizing mortgages have equal monthly payments that gradually pay off the principal and interest, while partially amortizing mortgages have a balloon payment at the end, which is typically smaller than the original loan amount.

A Ba1lloon Payment Equal to a Mortgage's Original Loan Amount