Finance
The term 'amortization' in mortgage lending refers to:
AIncreasing the principal balance over time
BGradually paying off the loan through scheduled payments of principal and interest✓ Correct
CThe process of refinancing a loan at a lower rate
DThe lender's right to demand full repayment
Explanation
Amortization is the process of repaying a loan through regular periodic payments that cover both interest and principal, gradually reducing the loan balance to zero over the loan term.
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