What type of mortgage allowed borrowers to only pay interest accrued on the mortgage without ever paying off the principle?
A) subprime
B) prime
C) adjustable
D) option ARM
E) fixed
Answer: D
Explanation: The option ARM, lets people choose to pay only the interest on their loans every month (which meant they would never pay off the principle) or even less than the interest (which meant the amount they owed increased every month).
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