Which of the Following Is Not True About Interest-Only Mortgages

question 45

Multiple Choice

Which of the following is not true about interest-only mortgages?

• A) Low payments in initial years (10 to 15 years) - only includes interest on borrowed amount.
• B) Low payments in initial years (10 to 15 years) - only includes principal repayment on borrowed amount.
• C) After initial period, payments increase such that entire loan amount is amortized by the end of 30 years.
• D) None of the above is true.

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Strategy Implementation

The execution phase where strategies and plans are put into action to achieve the organizational goals and objectives.

Strategic Analysis

An evaluation of an organization's external and internal environments to formulate strategies for competitive advantage.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with higher elasticity indicating greater responsiveness.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices over a given period of time.