Asked by Riranda Moorman on Jul 27, 2024
Verified
Iris is looking for a short-term mortgage that will allow her to pay fixed payments at a relatively low fixed interest rate during the life of the mortgage and one large payment at the end of the term.What kind of mortgage should Iris take?
A) A balloon-payment mortgage
B) A VA mortgage
C) A conventional mortgage
D) A graduated-payment mortgage
Balloon-Payment Mortgage
A balloon-payment mortgage is a type of loan that features low initial payments but ends with a large lump-sum payment due at the end of the mortgage term.
Fixed Payments
Regular, equal amounts paid over a specified period until the total amount of debt is paid off.
- Familiarize yourself with the rudimentary principles of multiple mortgage types and their inherent properties.
- Comprehend the consequences of specific loan attributes including variable interest rates, lump-sum payments at the end of a loan term, and state support.
Verified Answer
GM
Gurwinder MultaniJul 30, 2024
Final Answer :
A
Explanation :
A balloon-payment mortgage fits Iris's requirements as it allows her to pay fixed payments at a fixed interest rate during the term, followed by one large final payment at the end of the term. This type of mortgage is often shorter in duration and offers lower interest rates compared to traditional fixed-rate mortgages.
Learning Objectives
- Familiarize yourself with the rudimentary principles of multiple mortgage types and their inherent properties.
- Comprehend the consequences of specific loan attributes including variable interest rates, lump-sum payments at the end of a loan term, and state support.
Related questions
A Balloon-Payment Mortgage Is a Type of Loan That Allows ...
When a Borrower Does Not Qualify for a Conventional Mortgage,he ...
A Point Is a One-Time Charge Equal to ________ of ...
If Jake Signs a Graduated-Payment Mortgage,he Will Pay a Variable ...
Ordinarily, the Longer the Maturity of the Loan, the Higher ...