A partially amortized mortgage requires a?

A partially amortized mortgage is a type of loan in which the payments made over the term of the loan do not fully pay off the principal by the end of the loan term. Instead, these loans require regular payments of interest and a portion of the principal, but typically leave a substantial balance due when the term ends. This remaining balance is known as a "balloon payment," which is a larger-than-normal final payment that pays off the remaining principal in one lump sum.

The reason for this structure could be that the lender wants to maintain lower monthly payments for the borrower or because the loan is intended to be temporary, with an expectation to refinance or sell the property before the balloon payment is due. In such cases, the borrower must be prepared to pay off the remaining balance typically at the end of a set period, making the balloon payment aspect vital to understanding this type of mortgage arrangement.

Other options like a due on sale clause, junior lien, or partial release may apply in various mortgage situations but are not directly associated with the specific characteristic of a partially amortized mortgage requiring a larger final payment.