Read CAREFULLY, then determine the correct answer. 20. Which of the following describes a bolloon mortgage? A. A very high first payment, with all other payments relatively low 8. A very high last payment, with all other payments relatively low C. A very low first payment, with of other payments relatively high D. A very low first payment, with all other payments relatively low Answer: B a B D 5 poir

## Step 1<br />A balloon mortgage is a type of mortgage where the monthly payments are significantly lower than the total loan amount. This is because the bulk of the loan is due at the end of the loan term, which is known as the "balloon payment".<br />## Step 2<br />The balloon payment is typically due at the end of the loan term, which is usually 5 to 7 years. This means that the last payment is significantly higher than the previous payments.<br />## Step 3<br />Given the options, the one that best describes a balloon mortgage is the one where there is a very high last payment, with all other payments relatively low. This corresponds to option B.