Question

A balloon payment mortgage makes the best sense for borrowers who carefearful of?
A. taking risks when borrowing money.
B. planning on selling their homes before the term of the loan ends.
C. looking to avoid borrowing money from banks.
D. anticipating losing their jobs in the next few years.

Answer 1

B. Planning on selling their homes before the term of the loan ends.

Answer 2

Balloon payment mortgage includes monthly payments for an amount that is similar to a standard 30-year fixed mortgage at the same rate.

A balloon payment mortgage makes the best sense for borrowers who carefearful of planning on selling their homes before the term of the loan ends. Correct answer: B