For the first 15 years of a 30-year mortgage,the majority of each monthly payment goes to
A)principal.
B)interest.
C)real estate taxes.
D)homeowner's insurance.
E)private mortgage insurance.

Question

Quizplus · Accepted Answer

During the first 15 years of a 30-year mortgage, the majority of each monthly payment goes towards paying off the interest on the loan rather than the principal. Only a small portion goes towards the principal balance. This is because interest is calculated based on the remaining principal balance, which is higher at the beginning of the loan. As the principal balance decreases over time, more of each payment goes towards paying off the principal balance.

For the First 15 Years of a 30-Year Mortgage,the Majority