3. A borrower is presented with a number of loan options on a $200,000 mortgage. The one with the lowest monthly payment is characterized as a "negative amortization" loan. Which answer below best describes this arrangement? Ch4 a. At maturity, the principal balance of the loan will be negative b. Payments will be applied first against principal, then interest c. The principal balance owed will increase over the term d. The loan will negatively affect the borrower's credit rating