10
QuizMultiple Choice
Mortgages and Home Ownership
Question 10 • Financial Literacy (WMHS) - Semester 1
The image and chart show the terms of a sample balloon payment mortgage.According to the terms of the sample balloon payment mortgage, what will most likely occur at the end of the regular payment term?
Answer
A
the remaining principal of $173,073 will be due immediatelyB
the interest rate will change to decrease the monthly paymentC
the loan’s terms have all been met and it is paid in fullD
the monthly payments will increase due to an increase in principal