Finance
A mortgage that requires equal monthly payments that fully pay off both principal and interest over the loan term is called a(n):
ABalloon mortgage
BInterest-only mortgage
CFully amortizing mortgage✓ Correct
DReverse mortgage
Explanation
A fully amortizing mortgage has equal monthly payments calculated so that the loan is completely paid off (principal and interest reduced to zero) by the end of the loan term. The classic 30-year fixed-rate mortgage is the most common example.
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