Finance
In Tennessee, a 'biweekly mortgage payment' plan results in:
AHigher monthly payments
BThe equivalent of 13 monthly payments per year, reducing the loan term and total interest✓ Correct
CLower annual interest
DAutomatic refinancing every 5 years
Explanation
With biweekly payments, the borrower makes 26 half-payments per year (equivalent to 13 full monthly payments), effectively making one extra payment annually. This accelerates principal payoff and reduces total interest.
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