Finance
In New York, an 'interest-only mortgage' requires the borrower to:
APay only principal during the interest-only period
BPay only interest for a specified period, after which the loan typically converts to fully amortizing payments or a balloon✓ Correct
CPay no monthly payments during the interest-only period
DAutomatically refinance after the interest-only period
Explanation
An interest-only mortgage requires payments of only the interest (no principal) during the interest-only period. The principal balance does not decrease. At the end of this period, the loan converts to fully amortizing payments or the balance is due in a balloon payment.
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