What is the minimum period for a balloon mortgage?

In the context of balloon mortgages, the defining feature is the significant lump sum payment that comes due at the end of a specified term, which is often shorter than the amortization period of the loan. The minimum period for a balloon mortgage is typically understood to be a term that allows for relatively short-term repayment, leading to the conclusion that a 30-year amortized loan due in 60 months is suitable.

This option represents a structure where the homeowner would make payments as if they were on a 30-year repayment schedule, but the full principal balance becomes due and payable after just 5 years (60 months). This aligns with the general characteristic of balloon loans, where the total loan amount does not fully pay off through regular monthly payments over the shorter duration, thus resulting in a balloon payment at the end of that term.

In contrast, the other options present either longer periods before the balloon payment is due or different amortization schedules that do not fit the standard definition or structure of balloon mortgages.