Register
The borrower of an amortized mortgage makes most of the payment during the early life of the mortgage: Multiple Choice towards the principal. towards the interest. equally towards the principal and interest.
90.2k views
0 votes
The borrower of an amortized mortgage makes most of the payment during the early life of the mortgage: Multiple Choice towards the principal. towards the interest. equally towards the principal and interest. mostly towards the principal rather than interest. None of these choices are correct.

User Johan D
by
4.8k points

1 Answer

1 vote

Answer:

The correct answer is letter "B": towards the interest.

Step-by-step explanation:

Mortgage payments are composed of the principal and the interest. During the early life of the mortgage, most of the payments go towards the interest because it is calculated according to the outstanding balance of the mortgage, which is higher at the beginning but as the loan approaches, the maturity date most of the payments will be directed to the principal and a minimum to interest.

User Redcalx
by
5.0k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.6m questions

7.3m answers

Other Questions

_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
Ensuring that an individual is who they claim to be is the function of _____. select one: a. confidentiality b. authorization c. availability d. authentication e. nonrepudiation
The current market price for good y is above the equilibrium price, and then the price of a subsitute good, x, increases. the demand curve for good y shifts as a result. what is the likely outcome of the
Link Copied!