Finance
What does 'amortization' mean in the context of a North Dakota mortgage?
AThe process of appraising property value over time
BThe gradual repayment of a loan through scheduled periodic payments covering principal and interest✓ Correct
CThe acceleration of a loan balance after default
DThe transfer of loan servicing rights to another lender
Explanation
Amortization is the process of paying off a loan over time through regular payments that cover both principal and interest. Early payments are largely interest; later payments apply more to principal.
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