Finance
An interest-only mortgage requires the borrower to pay:
AEqual monthly payments of principal and interest
BOnly the interest portion each month, with the full principal due at the end of the term or upon refinancing✓ Correct
CDouble payments for the first five years, then interest only
DInterest plus a small amount of principal in the early years
Explanation
With an interest-only mortgage, the borrower pays only the interest each month — none of the payment goes toward principal. The loan balance does not decrease over the interest-only period. At the end of the period, the borrower must refinance, sell, or make a lump-sum principal payment.
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