Community Trust Bank provides Devlin with a mortgage to buy a home.The rate of interest is fixed for seven years.At the end of that period,a large payment for the entire balance of the mortgage loan is due.This is

Question

Quizplus · Accepted Answer

A mortgage with a large payment due at the end of the loan term is commonly referred to as a balloon mortgage. This type of mortgage typically offers lower monthly payments for a set period of time, followed by a large balloon payment to pay off the remaining balance. It is a legitimate type of loan and is not a violation of the law.

Community Trust Bank Provides Devlin with a Mortgage to Buy