What is the regular periodic payment a borrower agrees to make called?

What is the regular periodic payment a borrower agrees to make called?

• A. Insured Mortgage
• B. Late Charge
• C. Installment
• D. Leasehold

Answer: (C)

The regular periodic payment that a borrower agrees to make is known as an installment. This term is commonly used in the context of loans, including mortgages, where borrowers repay borrowed funds through a series of scheduled payments over a specific term. Each installment typically includes both principal and interest components, allowing the borrower to gradually pay down the outstanding balance of the loan while covering the interest cost for borrowing. The other options refer to different concepts in mortgage financing. An insured mortgage typically involves a government-backed insurance program to protect lenders against borrower default, thus ensuring the lender can recover their funds. A late charge is a fee that is assessed when a payment is made after its due date, serving as a penalty for delayed payment but not referring to the periodic payment itself. A leasehold pertains to a type of property interest where one party holds the right to occupy and use land or property owned by another under a lease agreement, rather than a payment structure.

The regular periodic payment that a borrower agrees to make is known as an installment. This term is commonly used in the context of loans, including mortgages, where borrowers repay borrowed funds through a series of scheduled payments over a specific term. Each installment typically includes both principal and interest components, allowing the borrower to gradually pay down the outstanding balance of the loan while covering the interest cost for borrowing.

The other options refer to different concepts in mortgage financing. An insured mortgage typically involves a government-backed insurance program to protect lenders against borrower default, thus ensuring the lender can recover their funds. A late charge is a fee that is assessed when a payment is made after its due date, serving as a penalty for delayed payment but not referring to the periodic payment itself. A leasehold pertains to a type of property interest where one party holds the right to occupy and use land or property owned by another under a lease agreement, rather than a payment structure.