Question

Question 2 of 10
2 Points
Which of the following is a characteristic of a balloon mortgage?
O
A. Series of equal payments over 30 years
O
B. Written for 20% of the home's value
O
C. Available only for new home purchases
O
D. Series of equal payments followed by one large payment
SUBM

Answer 1

D

A balloon mortgage is where a large portion of the borrowed principal is repaid in a single payment at the end of the loan period.