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 during the loan term but a large "balloon" payment at the end. Borrowers planning to sell their home before the loan term ends can sell the home to make the balloon payment (or use the proceeds) since they won't be holding the loan until the balloon payment is due. Those fearful of risk, avoiding banks, or anticipating job loss would not favor this as the balloon payment is a large risk. Avoiding borrowing is irrelevant here.

Answer:

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