Finance
An interest-only mortgage in South Dakota means the borrower:
APays only interest and never reduces the principal balance during the interest-only period✓ Correct
BPays no interest for the first 5 years
CPays interest and principal in equal parts each month
DMakes bi-weekly payments to reduce interest costs
Explanation
During the interest-only period, payments cover only accrued interest, not principal. The loan balance does not decrease. After the interest-only period, payments increase to amortize the full balance.
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