Finance
An interest-only loan requires the borrower to pay:
AOnly principal each month with no interest
BOnly interest during the loan term with the full principal due at maturity or refinance✓ Correct
CEqual principal payments plus interest
DA fixed payment that never changes
Explanation
An interest-only loan requires the borrower to pay only interest during the loan term. The full principal balance does not decrease and is due in a lump sum at maturity or must be refinanced.
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