Finance
In West Virginia, which type of mortgage allows the loan balance to increase over time because monthly payments do not cover all the interest owed?
AFully amortizing mortgage
BNegative amortization loan✓ Correct
CInterest-only mortgage
DBalloon mortgage
Explanation
A negative amortization loan has payments below the interest due, causing unpaid interest to be added to the principal balance. This was common in certain ARM products before the 2008 financial crisis and is now heavily restricted under Qualified Mortgage rules.
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