California Real Estate Practice Exam

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Master the California Real Estate Exam with our comprehensive practice quiz. Get expert tips, detailed content review, and insider strategies to pass on your first try.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is the term for the last payment on a mortgage loan that is significantly larger than the other payments?

A balloon payment
A final installment
A lump sum payment
A settlement payment

The correct answer is: A balloon payment

A balloon payment is the term used to describe a large final payment on a mortgage loan. This option is the most accurate because the other options are not specific to the last payment or the amount being significantly larger than the other payments. A final installment can refer to any last payment, and a lump sum payment and a settlement payment do not indicate a difference in size compared to other payments. Therefore, A is the best answer for this question.