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What type of mortgage rarely exists in today's marketplace, and if used, is typically for a very short time period?

A. Fixed-rate mortgage
B. Interest-only mortgage
C. Adjustable-rate mortgage
D. Reverse mortgage

1 Answer

4 votes

Final answer:

Interest-only mortgage (B)

Step-by-step explanation:

The mortgage type that rarely exists in today's marketplace and is typically for a very short time period is the interest-only mortgage (B). An interest-only mortgage allows the borrower to only pay the interest on the loan for a specific period, typically between 5 to 10 years. After this period, the borrower must start paying both the principal and interest, leading to higher monthly payments.

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