Finance
Amortization in real estate finance refers to:
AThe process of depreciating a building for tax purposes
BThe gradual repayment of a loan through scheduled principal and interest payments✓ Correct
CThe lender's right to accelerate the full loan balance
DThe adjustment of an ARM's interest rate
Explanation
Amortization is the process of paying off a loan through regular scheduled payments that include both principal and interest. Early payments are mostly interest; over time, a greater portion applies to principal.
Related Delaware Finance Questions
- What does the annual percentage rate (APR) on a mortgage loan represent?
- What is a 'conforming loan' in the U.S. mortgage market?
- A seller in Delaware offers to 'carry back' a second mortgage to help the buyer close. This is known as:
- The Truth in Lending Act (TILA) requires lenders to disclose the:
- The Truth in Lending Act (TILA) requires lenders to disclose the annual percentage rate (APR). The APR is:
- In Delaware, a deed of trust differs from a mortgage primarily because:
- Which type of mortgage loan is insured by the Federal Housing Administration (FHA)?
- What is 'prepayment penalty' in a Delaware mortgage, and are they permitted?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →