a balloon payment mortgage makes the best sense for borrowers who are\n○ fearful of taking risks when…

a balloon payment mortgage makes the best sense for borrowers who are\n○ fearful of taking risks when borrowing money.\n○ planning on selling their homes before the term of the loan ends.\n○ looking to avoid borrowing money from banks.\n○ anticipating losing their jobs in the next few years.

a balloon payment mortgage makes the best sense for borrowers who are\n○ fearful of taking risks when borrowing money.\n○ planning on selling their homes before the term of the loan ends.\n○ looking to avoid borrowing money from banks.\n○ anticipating losing their jobs in the next few years.

Answer

Brief Explanations:

A balloon payment mortgage has smaller regular payments and a large final (balloon) payment. Borrowers planning to sell before the loan term ends can pay the smaller installments and then sell the home to cover the balloon payment, making this option suitable. The other options don't align: risk - averse borrowers would avoid balloon payments (risk of large final payment), avoiding banks isn't related to balloon mortgages, and those fearing job loss can't afford the balloon payment.

Answer:

B. planning on selling their homes before the term of the loan ends.