Finance
A 'straight-term' or 'interest-only' mortgage requires the borrower to:
AA. Pay principal and interest monthly
BB. Pay only interest for the term, with the full principal due at maturity✓ Correct
CC. Gradually increase payments over time
DD. Maintain a minimum balance in escrow
Explanation
An interest-only (straight-term) loan requires only interest payments during the loan term. The entire principal balance is due in a lump sum at maturity. The borrower builds no equity through payments — only through appreciation.
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