Finance
A mortgage that allows the borrower to pay only the interest each month (without reducing principal) is called a(n):
AFully amortized mortgage
BReverse mortgage
CInterest-only mortgage✓ Correct
DGraduated payment mortgage
Explanation
An interest-only mortgage requires the borrower to pay only the interest portion of the loan each month during the interest-only period. The principal balance does not decrease.
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