Finance
In Tennessee, an 'interest-only' mortgage requires the borrower to pay:
AOnly the principal balance each month
BOnly the interest accrued each month, with no principal reduction✓ Correct
CBoth principal and interest in equal monthly installments
DThe full loan balance each month
Explanation
An interest-only loan requires monthly payments that cover only the accrued interest. The principal balance does not decrease during the interest-only period, after which payments typically increase significantly.
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