Question 28 • 26-27 Ignite Technical Math-Financial Math - MA2007
With a typical fixed-rate mortgage, the scheduled payment stays about the same, but its split changes as the loan balance is paid down. Early on, the balance is large, so most of each payment goes toward interest; later, less interest is due and more goes toward principal. Therefore, the most accurate statement is that payments cover mostly interest at the beginning and mostly principal near the end.
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