Loan Payment Types

A

The correct answer to the question is A. Biweekly mortgage.

A biweekly mortgage is a type of mortgage where the borrower makes payments every two weeks instead of once a month. These payments are equal to half of the regular monthly payment amount. For example, if the regular monthly payment is $1,000, the biweekly payment would be $500.

By making payments every two weeks instead of once a month, borrowers are able to make 26 half payments in a year, which is equivalent to 13 full monthly payments. This extra payment each year can help to reduce the total amount of interest paid over the life of the loan and shorten the loan term.

It's important to note that a biweekly mortgage is different from a semiweekly mortgage. A semiweekly mortgage would require payments twice a week, which is not a common payment schedule for mortgages.

A growing equity mortgage, on the other hand, is a type of mortgage where the borrower makes increasing payments over time. This type of mortgage is designed to help borrowers build equity in their homes faster by paying down the principal balance more quickly.

In summary, a loan on which payments equal to half the regular monthly payments is called a biweekly mortgage.