A mortgage amortized over a longer period than its actual term is best described as which type of mortgage?

A mortgage that is amortized over a longer period than its actual term is best described as a balloon mortgage. In this type of mortgage, the borrower makes lower monthly payments based on an extended amortization period, such as 30 years, while the loan itself is due and payable in a much shorter term, commonly 5 or 7 years. As a result, the borrower typically ends up with a significant remaining balance at the end of the term, which is referred to as the "balloon" payment.

This structure allows borrowers to have lower monthly payments during the loan term, but they must be prepared for the lump sum payment that is due at maturity. The major characteristic that differentiates a balloon mortgage is this disparity between the amortization schedule and the loan term, making it crucial for borrowers to understand the potential financial implications.