What does 360/180 imply in loan terms?

The term "360/180" in loan terms refers to the structure of a mortgage repayment schedule. Specifically, it indicates that the loan is fully amortized over a 30-year period, which is represented by the 360 months, but the loan is due in full after just 15 years, as indicated by the 180 months. This is characteristic of a balloon mortgage, where the borrower makes payments based on a longer amortization schedule but must pay off the remaining balance at a shorter maturity date.

Choosing this option highlights the nature of balloon mortgages, which can often have lower initial payments, but require the borrower to pay off the entire loan balance or refinance at the 15-year mark. Thus, understanding the implications of "360/180" provides important insight into the repayment expectations and duties of the borrower.