Finance
What is amortization in the context of a Hawaii mortgage?
AA. The process of increasing the loan balance over time
BB. The gradual repayment of the loan principal through regular payments✓ Correct
CC. The calculation of points paid at closing
DD. The adjustment of the interest rate on an ARM
Explanation
Amortization is the process of paying off the mortgage through regular payments that include both principal and interest, with each payment reducing the outstanding loan balance.
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