Finance
Amortization in a mortgage loan refers to:
APaying off the interest in advance
BThe gradual repayment of the loan through regular payments of principal and interest✓ Correct
CA prepayment penalty
DNegative equity in the property
Explanation
Amortization is the process of paying off a loan over time through regular installment payments that include both principal reduction and interest. Early payments are mostly interest; later payments are mostly principal.
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