A lender must notify a borrower when a final/balloon payment is due:
Correct Answer
B) 30 to 90 days prior to the due date.
California law requires lenders to notify borrowers of a balloon payment between 90 and 150 days before it comes due, giving them time to refinance or prepare.
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Related Topics & Key Terms
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Related Concepts
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
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