Finance
In Tennessee, 'amortization' of a mortgage loan refers to:
AThe process of obtaining final loan approval
BThe gradual repayment of principal over the loan term through periodic payments✓ Correct
CThe initial interest rate period on an ARM
DThe lender's right to accelerate the loan
Explanation
Amortization is the gradual repayment of the loan principal through scheduled periodic payments. Early payments are mostly interest; later payments have more principal as the balance decreases.
Related Tennessee Finance Questions
- In Tennessee, a 'home equity line of credit' (HELOC) is secured by:
- An 'assumable' mortgage in today's rising rate environment would be most valuable when:
- In Tennessee, a 'purchase money mortgage' is one that:
- In Tennessee, a 'jumbo loan' is a mortgage that:
- In Tennessee, a VA loan benefit is available to:
- In Tennessee, a 'balloon mortgage' is characterized by:
- A Tennessee borrower who wants to lower their mortgage payment without refinancing might consider:
- A 'partial release' clause in a blanket mortgage allows a developer to:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →