Finance
Which type of mortgage allows the borrower to pay only interest during the loan term, with the full principal due at maturity?
AAmortized mortgage
BAdjustable-rate mortgage
CInterest-only loan✓ Correct
DReverse mortgage
Explanation
An interest-only loan requires the borrower to pay only the interest during the loan term. The full principal balance remains due at the end of the term (balloon payment).
Related North Carolina Finance Questions
- Which federal law requires lenders to provide a Loan Estimate within three business days of receiving a mortgage application?
- The Truth-in-Lending Act (TILA) requires lenders to disclose the:
- An adjustable-rate mortgage (ARM) in North Carolina typically has an initial rate that is:
- A USDA Rural Development loan in North Carolina is designed for:
- An 'alienation clause' (due-on-sale clause) in a NC deed of trust requires:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating based on:
- What is the purpose of an escrow account held by a mortgage servicer?
- The NC Commissioner of Banks regulates which of the following?
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →