Question

The type of plan for a loan calls for payments of interest only, with the principal to be paid in full at the end of the loan term is called a(n):________.

Answer 1

Interest-only loan

Step-by-step explanation:

Interest-only loan - it is type of loan in which loan borrower has to return interest with the principal amount that will remain change for all whole periods of interest.

In interest-only loans, the borrower needs to pay interest for a fixed period. This period varies from 5 to 7 years. After this fixed period process like refinancing, or principal amount pay off can be initiated by the lender side.