Finance
Which type of mortgage allows the borrower to pay only interest for a specified period, with principal payments beginning later?
AReverse mortgage
BInterest-only mortgage✓ Correct
CGraduated payment mortgage
DBalloon mortgage
Explanation
An interest-only mortgage allows the borrower to pay only interest for an initial period (typically 5-10 years), with no principal reduction. After the interest-only period, the loan amortizes or becomes due.
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