Finance
Amortization in mortgage lending refers to:
AThe process of increasing loan payments over time
BThe gradual repayment of the loan principal through regular payments✓ Correct
CThe addition of unpaid interest to the loan balance
DThe early payoff of the mortgage without penalty
Explanation
Amortization is the process of repaying a loan through regular (usually monthly) payments that include both principal and interest. Over time, the principal portion of each payment increases while the interest portion decreases.
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