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An unamortized loan involves paying a balloon payment at the end of the term.
True
A loan that is negatively amortized means that the monthly payments decrease over time.
False
A fully amortized loan requires level monthly payments that cover both principal and interest.
True
Partially amortized loans involve paying off the principal amount entirely by the end of the term.
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A 15-year loan repayment period typically involves paying less interest compared to a 30-year loan.
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The length of the repayment period of a loan does not affect the monthly payment amount.
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An adjustable-rate mortgage (ARM) maintains a fixed interest rate throughout the loan term.
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A lower loan-to-value ratio indicates less risk for the lender.
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The lender underwrites a loan only when mortgage insurance is not required.
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Both parties share the risk of interest rate fluctuations in an adjustable-rate mortgage (ARM).
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