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CTFA · Question #233

It is the mortgage that requires the borrower to pay only interest; typically used to finance the purchase of more expensive properties.

The correct answer is C. Interest-only mortgage. See the full explanation below for the reasoning.

Investment Management

Question

It is the mortgage that requires the borrower to pay only interest; typically used to finance the purchase of more expensive properties.

Options

  • AShared appreciation mortgage
  • BBalloon payment mortgage
  • CInterest-only mortgage
  • DMarginal rate mortgage

How the community answered

(33 responses)
  • A
    15% (5)
  • B
    6% (2)
  • C
    70% (23)
  • D
    9% (3)

Topics

#interest-only mortgage#mortgage types#high-value property financing

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