Finance
What is an 'interest-only' mortgage in Delaware?
AA loan where the principal is forgiven after 10 years
BA loan where the borrower pays only interest for a specified period, with no principal reduction✓ Correct
CA loan with only an interest rate and no fees
DA loan that accrues interest but requires no monthly payments
Explanation
An interest-only mortgage allows the borrower to pay only interest (no principal) for a specified period (e.g., 5-10 years). After the interest-only period, payments increase to include principal amortization.
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