Ted has a mortgage that requires low payments for seven years and then a large payment for the entire balance of the mortgage loan after the seven years have passed.Ted's mortgage is

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Ted's mortgage requires low payments for seven years and then a large payment for the entire balance of the mortgage loan, which is the defining feature of a balloon mortgage. An interest-only mortgage would require Ted to only pay the interest on the loan for a specified period of time, instead of paying down the principal. A subprime mortgage is typically offered to borrowers with low credit scores and comes with higher interest rates and fees. A fixed-rate mortgage has a set interest rate and payments for the entire life of the loan, which does not match Ted's situation. Therefore, the best choice is A - a balloon mortgage.

Ted Has a Mortgage That Requires Low Payments for Seven