Finance
Which of the following types of mortgages allows a borrower to make interest-only payments for a set period, after which they must pay principal and interest?
AFully amortizing mortgage
BReverse mortgage
CInterest-only mortgage✓ Correct
DGraduated payment mortgage
Explanation
An interest-only mortgage allows the borrower to pay only interest for a specified period (typically 5–10 years). After the interest-only period ends, the borrower must make fully amortizing payments (principal + interest) on the remaining balance.
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