Single Large Principal Payment Mortgage

B

The correct answer is B. Balloon payment mortgage.

A balloon payment mortgage is a type of mortgage loan that requires a borrower to make regular payments for a fixed period of time, usually several years, and then pay a lump sum or "balloon payment" at the end of the loan term. This lump sum is typically much larger than the regular payments and represents the remaining balance of the loan.

Balloon payment mortgages can be attractive to borrowers who expect to have a large sum of money available at the end of the loan term, such as from the sale of a property or an inheritance. However, they can also be risky for borrowers who may not be able to make the balloon payment when it becomes due. In such cases, the borrower may need to refinance the loan or sell the property to make the payment.

Fixed rate mortgages, on the other hand, have a fixed interest rate and fixed monthly payments for the entire term of the loan. Adjustable rate mortgages (ARMs) have interest rates that can vary over the life of the loan, usually tied to a benchmark rate such as the prime rate. Marginal rate mortgages are not a common type of mortgage and do not refer to a specific type of loan.