Finance
In a fully amortized loan, the monthly payment:
ADecreases over the life of the loan
BIncreases with inflation
CRemains the same throughout the loan term✓ Correct
DIs applied entirely to principal in the first year
Explanation
In a fully amortized loan, the monthly payment amount remains constant throughout the loan term. However, the portion allocated to interest decreases over time while the portion applied to principal increases.
Related South Dakota Finance Questions
- In South Dakota, which government program provides loan guarantees for agricultural land purchases to help beginning farmers?
- The Truth in Lending Act (TILA) requires lenders to disclose which key cost figure to South Dakota borrowers?
- A South Dakota lender requires a debt-to-income (DTI) ratio of no more than 43%. A borrower has monthly gross income of $5,000 and total monthly debt payments of $1,800. Their DTI is:
- In South Dakota, 'loan origination' refers to the process by which:
- In South Dakota, the 'note' in a mortgage transaction is the:
- Which type of mortgage loan is guaranteed by the Department of Veterans Affairs?
- In South Dakota, a 'hard money loan' in real estate is characterized by:
- In South Dakota, what is the primary purpose of a title insurance policy obtained at closing?
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →