Which of the following is true regarding a mortgage?
A)The payment is made up of principal and interest.
B)Payments in the early years of the mortgage have more interest and less principal.
C)Payments in the later years of the mortgage have more interest and less principal.
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

Mortgage payments are typically made up of both principal and interest, so option A is correct. Additionally, in the early years of a mortgage, the majority of the payment goes towards paying off the interest, so initially, less principal is paid off. As the mortgage progresses, more principal is paid off and less interest, so payments in the later years have more principal and less interest. Therefore, option B is also correct.

Which of the Following Is True Regarding a Mortgage