The majority of each monthly payment at the beginning of the loan goes to pay
A) principal.
B) interest.
C) real estate taxes.
D) homeowner's insurance.
E) private mortgage insurance.

Question

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At the beginning of the loan, most of the monthly payment goes towards paying off the interest on the loan rather than paying down the principal balance. As the loan ages, the proportion of the payment that goes towards the principal increases and the proportion that goes towards interest decreases.

The Majority of Each Monthly Payment at the Beginning of the Loan