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

Question

Quizplus · Accepted Answer

At the beginning of a loan, the majority of each monthly payment goes towards paying the interest rather than the principal. This is due to the way amortization schedules are structured, where earlier payments are heavily weighted towards interest to reduce the risk to the lender.

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