Finance
What is amortization in mortgage lending?
AThe process of increasing loan payments over time
BThe gradual repayment of a loan through regular scheduled payments of principal and interest✓ Correct
CThe prepayment penalty on a mortgage
DThe process of refinancing a loan at a lower rate
Explanation
Amortization is the process of paying off a loan through regular scheduled payments. Each payment covers interest due and reduces the principal balance, so the loan is fully paid at the end of the term.
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