Finance
An interest-only mortgage loan in Nebraska means:
AThe entire balance is due at the end of the first year
BFor a period, payments cover only interest — no principal reduction occurs✓ Correct
CInterest accrues but no payments are required during construction
DThe lender earns interest but charges no fees
Explanation
An interest-only loan requires the borrower to pay only the interest portion for a specified period. During this time, the principal balance does not decrease. When the period ends, payments increase to amortize the remaining balance.
Related Nebraska Finance Questions
- Under RESPA, which of the following is NOT considered a 'kickback' or prohibited practice?
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