The type of mortgage that will most likely need to be refinanced is the ____ mortgage.
A)fixed-rate
B)adjustable-rate
C)balloon-payment
D)graduated-payment
E)growing-equity

Question

Quizplus · Accepted Answer

A balloon-payment mortgage is one where the payments are relatively small in the beginning, but then a lump sum payment is due at the end. Most people choose to refinance this type of mortgage because they cannot afford the large balloon payment when it is due.

The Type of Mortgage That Will Most Likely Need to Be