Finance
A mortgage that requires the borrower to pay only interest during the loan term with the full principal due at maturity is called a:
AFully amortized loan
BPartially amortized loan
CStraight (term) loan✓ Correct
DGraduated payment mortgage
Explanation
A straight loan (also called a term loan or interest-only loan) requires the borrower to pay interest only during the loan term, with the entire principal balance due in a lump sum (balloon payment) at maturity.
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