A balloon-payment mortgage requires interest payments for a three- to five-year period. At the end of this period, full payment of the principal (the balloon payment) is required.

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A balloon-payment mortgage involves making interest payments for a set period of time, typically three to five years, and then paying off the entire principal in one lump sum at the end of the term. Therefore, the statement is true.

A Balloon-Payment Mortgage Requires Interest Payments for a Three- to Five-Year