A lender that includes a large balloon payment at the end of a loan that will require additional financing to pay off is regarded as unethical.

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Including a large balloon payment at the end of a loan that requires additional financing to pay off is considered unethical because it can put the borrower in a difficult financial situation and may be deceptive in terms of the true cost of the loan.

A Lender That Includes a Large Balloon Payment at the End