Finance
A fully amortizing mortgage means:
AThe loan balance increases over time
BRegular payments of principal and interest reduce the balance to zero by the end of the loan term✓ Correct
COnly interest is paid during the loan term with a balloon at the end
DThe interest rate adjusts annually
Explanation
A fully amortizing mortgage is one where each scheduled payment covers both interest and a portion of principal, so that the loan is completely paid off by the final payment.
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