American_Bankers_Association
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)- A15% (5)
- B6% (2)
- C70% (23)
- D9% (3)
Topics
#interest-only mortgage#mortgage types#high-value property financing
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