Finance
In New Mexico, a 'fully amortizing' mortgage means:
AThe loan has a balloon payment at the end
BRegular payments of principal and interest are calculated so the loan balance reaches exactly zero at the end of the term✓ Correct
CInterest is paid first, then principal at maturity
DThe loan allows negative amortization
Explanation
A fully amortizing loan has equal periodic payments that include both interest and principal, structured so the final payment reduces the balance to exactly zero. A standard 30-year fixed-rate mortgage is a fully amortizing loan.
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