Finance
What is amortization in Nevada real estate lending?
AThe process of increasing loan payments over time
BThe gradual repayment of a loan through scheduled principal and interest payments over a set term✓ Correct
CThe lender's process of selling loans on the secondary market
DThe calculation of property depreciation for tax purposes
Explanation
Amortization is the process of repaying a loan through regular installment payments that include both principal and interest. In a fully amortized loan, the balance reaches zero at the end of the term. Early payments are mostly interest; later payments are mostly principal.
Related Nevada Finance Questions
- What is the debt service coverage ratio (DSCR) used for in Nevada commercial lending?
- What is a balloon payment mortgage and what risk does it present to Nevada borrowers?
- What is the purpose of an adjustable-rate mortgage (ARM) disclosure in Nevada?
- Which federal law requires lenders to provide a Loan Estimate within 3 business days of receiving a complete loan application?
- A loan-to-value (LTV) ratio of 80% on a $350,000 property means the loan amount is:
- What is the 'due-on-sale' clause in a Nevada mortgage and what does it do?
- What is a wraparound mortgage (all-inclusive deed of trust) in Nevada seller financing?
- What is the impact of Nevada's 'no state income tax' on real estate investment decisions?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →