Which of the Following Is FALSE Concerning Interest-Only Loans

question 17

Multiple Choice

Which of the following is FALSE concerning Interest-Only Loans:

• A) They usually have a balloon payments
• B) They have greater amortization than conventional loans
• C) They may result in more cash flow to the investor
• D) They may allow for a lower DCR

---

Definitions:

Likelihood Risk

The probability that a particular threat will exploit a vulnerability to cause harm to an organization or system.

Paper Cut

A small, often painful, cut on the skin caused by the edge of a piece of paper.

Indirect Costs

Expenses that are not directly attributable to a specific project or activity, such as overhead costs.

Personnel

Employees or staff members working within an organization or a specific project.