Which type of mortgage includes periodic payments with a final payment that is considerably larger than the preceding payments?

A balloon mortgage is specifically designed to require periodic payments that are smaller than what would be necessary to fully amortize the loan over its term. This structure leads to a final payment that is significantly larger, called a "balloon payment," due at the end of the loan period. This payment covers the remaining principal that was not amortized through the earlier smaller payments.

In the context of mortgage types, standard mortgages typically involve consistent monthly payments that fully pay off the loan by the end of the term. Adjustable rate mortgages, on the other hand, have interest rates that can change over time but do not inherently feature a large final payment. Similarly, fixed-rate mortgages also provide consistent payments throughout the life of the loan, ensuring that the borrower pays the same monthly amount until the loan is paid off. The unique characteristic of the balloon mortgage makes it the only option that matches the description of having a final payment much larger than the preceding payments.