Which of the Following Is FALSE Regarding Interest Only Loans

question 16

Multiple Choice

Which of the following is FALSE regarding interest only loans?

• A)They usually have 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

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Definitions:

Darwin

Refers to Charles Darwin, a 19th-century naturalist known for his foundational role in the theory of evolution through natural selection.

U.S. Civil War

The conflict between the Northern states (Union) and Southern secessionist states (Confederacy) from 1861 to 1865 over issues including states' rights and slavery.

World War I

A global conflict that took place primarily in Europe from 1914 to 1918, involving many of the world's great powers divided into two opposing alliances: the Allies and the Central Powers.

Kepler

Johannes Kepler was a German mathematician, astronomer, and astrologer who is best known for his laws of planetary motion, contributing significantly to the scientific revolution.