Finance
An amortized mortgage in Minnesota is one where:
AInterest only is paid each month
BEach payment includes both principal and interest, gradually paying off the loan balance✓ Correct
CThe entire principal is due in one balloon payment
DPayments are made only when the borrower has excess income
Explanation
An amortized loan has regular payments (usually monthly) that include both principal and interest. Early payments are primarily interest; later payments are primarily principal. By the end of the loan term, the balance is fully paid. Most Minnesota home mortgages are fully amortized over 15 or 30 years.
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