borrowers taking a balloon payment mortgage most likely plan to rent out their homes. must repay the loan in…

borrowers taking a balloon payment mortgage most likely plan to rent out their homes. must repay the loan in five to ten years. are unwilling to accept any risk in borrowing money. remain in their homes for 30 years or more.

borrowers taking a balloon payment mortgage most likely plan to rent out their homes. must repay the loan in five to ten years. are unwilling to accept any risk in borrowing money. remain in their homes for 30 years or more.

Answer

Answer:

B. must repay the loan in five to ten years.

Brief Explanations:

A balloon - payment mortgage typically has a relatively short - term repayment period, often five to ten years, after which a large lump - sum payment (the balloon payment) is due. Renting out homes is not the main characteristic related to this mortgage type. Borrowers taking this mortgage do accept risk as they face a large final payment. And they don't usually remain in their homes for 30 years or more as the loan structure is different from a traditional 30 - year mortgage.