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8 October, 09:05

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.

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  1. 8 October, 11:09
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    The correct answer is letter "B": towards the interest.

    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.
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