How are balloon payment mortgages different from traditional mortgages? Check all that apply.The term is shorter than for traditional mortgages.Unlike traditional mortgages, the borrower pays no interest.A large payment is due at the end of the term.Balloon mortgages are not issued by banks.Balloon mortgages are more commonly used by home buyers than traditional mortgages.
Answer
A
The term is shorter than for traditional mortgages.
B
Unlike traditional mortgages, the borrower pays no interest.
C
A large payment is due at the end of the term.
D
Balloon mortgages are not issued by banks.
E
Balloon mortgages are more commonly used by home buyers than traditional mortgages.
Explanation
Balloon mortgages typically have a shorter term than traditional mortgages, and the borrower owes a large final payment—the balloon payment—when the term ends. Interest is still charged, and banks can issue these mortgages, so B and D are incorrect. They are not more commonly used by home buyers than traditional mortgages, so E is incorrect.
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