Finance
An 'amortized loan' means that each monthly payment:
APays interest only, with the full principal due at the end
BIs applied to both principal and interest, with the loan fully paid by the end of the term✓ Correct
CIncreases annually based on the consumer price index
DCovers only taxes and insurance without reducing the loan balance
Explanation
A fully amortized loan has payments structured so that each payment covers both principal and interest, and the loan is completely paid off by the end of the scheduled term.
Related Nebraska Finance Questions
- Nebraska USDA Rural Development Direct loans differ from USDA Guaranteed loans in that Direct loans:
- A Nebraska buyer's Good Faith Estimate was replaced by which TRID disclosure document?
- Farm Credit Services of the Midlands serves Nebraska agricultural borrowers. This institution is part of the:
- A Nebraska homeowner has a home equity line of credit (HELOC). This is a:
- A Nebraska home appraises for $320,000. The buyer is borrowing $272,000. The LTV ratio is:
- A Nebraska buyer assumes an existing FHA mortgage. For loans originated before December 1, 1986:
- A seller who 'carries back' financing means the seller:
- A Nebraska borrower's mortgage payment includes principal, interest, taxes, and insurance (PITI). The taxes and insurance portions are held in:
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →