Finance
What is amortization in a mortgage?
AThe process of increasing the loan balance over time
BThe gradual repayment of a loan through scheduled payments of principal and interest✓ Correct
CThe penalty for paying off a loan early
DThe annual adjustment of the property tax
Explanation
Amortization is the process of paying off a loan through regular scheduled payments. Early payments are mostly interest; later payments apply more to principal.
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