Answered

Which of these statements is most accurate regarding mortgage payments through the life of your loan?

A. At the beginning of your loan, your payments are covering mostly interest. At the end of your loan, your payments are covering mostly principal.
B. The amount for your mortgage payments will decline over the life of your loan.
C. The amount of interest paid per mortgage payment will remain the same over the life of your loan.
D. The amount of principal paid per mortgage payment will decrease over the life of your loan.

Please select the best answer from the choices provided:

A, B, C, or D



Answer :

GinnyAnswer

Final answer:

The accurate statements are about how mortgage payments cover interest and principal over the loan life.


Explanation:

The most accurate statement regarding mortgage payments through the life of your loan is:

  1. At the beginning of your loan, your payments are covering mostly interest. At the end of your loan, your payments are covering mostly principal. This is because early on, a larger portion of your payment goes towards interest, but as you pay down the principal, more of your payment goes towards reducing the loan amount.
  2. The amount of principal paid per mortgage payment will decrease over the life of your loan. As you pay down the principal, the amount applied to it in each payment decreases.

Therefore, the correct options are A and D.


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