_________________ is where the repayment of the principal on a mortgage is generally spread out over the life of the loan.

Question

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Amortization is the process by which the repayment of the principal on a mortgage is spread out over the life of the loan. This means that the borrower pays back both principal and interest in equal installments over a period of time, typically 15 or 30 years for a standard mortgage. Option B) Collateralization refers to the process of putting up collateral to secure a loan, while option C) Securitization refers to the process of converting assets such as mortgages into securities that can be traded on financial markets. Option D) Indexation refers to the process of linking payments or returns (such as salaries or investments) to a particular price index.

_________________ Is Where the Repayment of the Principal on a Mortgage