Finance
An Oklahoma buyer uses an interest-only loan for a commercial property purchase. This means:
AThe buyer pays only insurance and taxes, not interest
BMonthly payments cover only the interest on the loan with no principal reduction; the full loan balance remains at term end✓ Correct
CThe loan has no maturity date
DInterest is deferred and added to the loan balance
Explanation
Interest-only loans require payments covering only the accruing interest, with the full principal remaining unchanged. At term end (or when required), the borrower must pay the balloon principal, refinance, or sell.
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