Final answer:
A fully amortized mortgage is a type of mortgage loan in which periodic payments are made, resulting in the loan being repaid in its entirety by the end of the mortgage term.
Step-by-step explanation:
A fully amortized mortgage is a type of mortgage loan in which periodic payments are made, resulting in the loan being repaid in its entirety by the end of the mortgage term.
This means that the borrower will gradually pay off both the principal amount borrowed and the interest over time. By making regular payments, the borrower decreases the outstanding balance of the mortgage until it reaches zero at the end of the term.
For example, let's say you have a 30-year fully amortized mortgage for $200,000 at an interest rate of 4%.
With this type of mortgage, you would make monthly payments that include both principal and interest, and over the course of 30 years, you would pay off the entire loan amount.
Therefore, the statement is True.