Question: While balloon mortgage loan payments are typically based on a 30-year amortization schedule, the loan actually matures in either 5,7 , or 10 years. Of

While balloon mortgage loan payments are typically based on a 30-year

While balloon mortgage loan payments are typically based on a 30-year amortization schedule, the loan actually matures in either 5,7 , or 10 years. Of the following, which is the primary risk that a lender reduces their exposure to through the relatively short loan term on a balloon mortgage? interest rate risk financial risk default risk liquidity risk

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