Finance
What is 'amortization' and how does a 30-year amortization schedule benefit a Nevada homebuyer?
AAmortization is a Nevada-specific term for property appreciation
BAmortization is the process of gradually paying off a loan through regular payments that cover both interest and principal — a 30-year amortization means lower monthly payments than a 15-year loan, improving affordability in Nevada's housing market✓ Correct
CAmortization only applies to commercial loans in Nevada
DAmortization is the decrease in property value over time
Explanation
Amortization is the systematic reduction of loan principal through periodic payments. A fully amortized loan is paid to zero at maturity. A 30-year amortized mortgage has lower monthly payments than a 15-year loan (more payments spread the principal), but costs more total interest over the life of the loan. In Nevada's Las Vegas market where home prices are high relative to median income, 30-year amortization improves affordability for many buyers.
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