Finance
An interest-only mortgage in New Hampshire means the borrower's monthly payment:
AIncludes both principal and interest in equal amounts
BCovers only the interest charge, with no reduction in the loan balance✓ Correct
CIs lower in the early years and higher later due to negative amortization
DDecreases each year as the balance is paid down
Explanation
With an interest-only mortgage, the borrower pays only the interest portion each month. The principal balance does not decrease during the interest-only period, after which the loan recasts to include principal payments.
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