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