Question

A balloon payment mortgage makes the best sense for borrowers who are

Answer 1

A balloon payment mortgage makes the best sense for borrowers who are likely to increase their income substantially in the future.

A balloon mortgage requires more payments at the end of the mortgage hence the name "ballon" since it's a big payment.

Typically a balloon mortgage has smaller payments

at the beginning and larger payments at the end.

Answer 2

who are planning on selling their homes before the term of the loan end

Step-by-step explanation:

solution

Balloon mortgage is refer to that mortgage who does not fully amortize over a loan term and borrower will make the payment over periods of time around 5 to 7 years

and at ends entire loan remaining balance will due once

so we can say last payment can be very large so we refer as balloon payment

so it is best sense for borrow who are planning on selling their homes before the term of the loan end