A short-term mortgage with a very large final payment is called a ____________ mortgage.
A)balloon
B)graduated-payment
C)growing-equity
D)shared-appreciation
E)negative-amortization

Question

Quizplus · Accepted Answer

A balloon mortgage is characterized by small monthly payments with a large final payment, typically due at the end of a 5-to-7-year term. This type of mortgage is often used by borrowers who plan to sell or refinance the property before the final payment is due.

A Short-Term Mortgage with a Very Large Final Payment Is