Ricky has a conventional mortgage. He can monitor the reduction of his loan balance through his payments by using _____ information.

Question

Quizplus · Accepted Answer

Amortization refers to the process of paying off a loan gradually over time through regular payments that include both principal and interest. As Ricky makes his mortgage payments, the amortization schedule will show the reduction of his loan balance and how much of each payment is going towards paying off interest versus the principal. Escrow, lock, PMI, and points do not relate directly to monitoring the reduction of a loan balance.

Ricky Has a Conventional Mortgage