General Mortgage KnowledgeQuestion 146 of 400
A fully amortizing loan is one in which:
a.Only interest is paid each month
b.Scheduled payments pay off the entire balance by the end of the term
c.A balloon is due at maturity
d.The balance grows over time
Explanation
A fully amortizing loan has payments structured so the balance reaches zero at the end of the term. Interest-only, balloon, and negatively amortizing loans do not fully pay down the balance through scheduled payments.
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