Finance
In South Carolina, what is 'interest-only' mortgage financing?
AA mortgage where the payment covers only the interest, with no principal reduction unless the borrower chooses✓ Correct
BA mortgage with no interest charges
CA mortgage where interest is deferred until maturity
DA mortgage where the interest rate changes annually
Explanation
An interest-only mortgage requires payments that cover only the interest owed, without reducing the principal balance. The borrower must eventually pay the principal in full (at maturity or through conversion to fully amortizing payments).
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