If a borrower takes out an interest-only loan, when are they expected to pay the principal of the loan? only after the borrower refinances as a balloon payment at the end of the loan term They aren't; interest over time will add up to more than the principal amount. in periodic monthly payments

icon
Related questions
Question
If a borrower takes out an interest-only loan,
when are they expected to pay the principal of
the loan?
only after the borrower refinances
as a balloon payment at the end of the loan term
They aren't; interest over time will add up to
more than the principal amount.
in periodic monthly payments
Transcribed Image Text:If a borrower takes out an interest-only loan, when are they expected to pay the principal of the loan? only after the borrower refinances as a balloon payment at the end of the loan term They aren't; interest over time will add up to more than the principal amount. in periodic monthly payments
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution