问题如下:
A balloon paymentequal to a mortgage’s original loan amount is a characteristic of a:
选项:
A. bullet mortgage.
B. fully amortizingmortgage.
C. partially amortizingmortgage.
解释:
A is correct.A bullet mortgage is a special type of interest-only mortgage in which there are no scheduled principalrepayments over the entire life of the loan. At maturity, a balloon paymentis required equal to the original loan amount.
B isincorrect because with a fully amortizing mortgage, the sum of all the scheduled principal repayments during themortgage’s life is such that when the last mortgage payment is made, theloan is fully repaid, with no balloon payment required.
C isincorrect because with a partially amortizing mortgage, the sum of all the scheduled principal repayments is less thanthe amount borrowed, resulting in a balloon payment equal to the unpaidmortgage balance (rather than the original loan amount).