With a fixed-rate mortgage,the proportion of each payment used to pay interest on the loan declines over time.

Question

Quizplus · Accepted Answer

With a fixed-rate mortgage, the interest rate and monthly payment remain the same throughout the life of the loan, but the proportion of each payment used to pay interest decreases over time as more of the principal gets paid off. This is because interest is calculated based on the remaining outstanding principal balance.

With a Fixed-Rate Mortgage,the Proportion of Each Payment Used to Pay