Finance
Which type of mortgage requires the borrower to pay only interest for a specified period, after which principal payments begin?
AFully amortizing mortgage
BInterest-only mortgage✓ Correct
CBalloon payment mortgage
DReverse mortgage
Explanation
An interest-only mortgage requires the borrower to pay only the accrued interest during the initial period. At the end of this period, the borrower must begin paying principal and interest or refinance the loan.
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