Final answer:
A mortgage loan that results in the entire principal balance being due at the end of the term after all other payments have been made is referred to as a balloon mortgage.
Step-by-step explanation:
The mortgage loan that results in the entire principal balance being due at the end of the term after all other payments have been made is referred to as a balloon mortgage.
In a balloon mortgage, the borrower makes regular payments for a set period of time, usually 5 or 7 years, and at the end of this term, the remaining principal balance is due in one lump sum payment.
This type of mortgage can be advantageous for borrowers who expect to sell or refinance the property before the balloon payment is due. However, it also poses a risk if the borrower is unable to make the final payment.