The borrower of an amortized mortgage makes most of the payment during the early life of the mortgage:

Question

Quizplus · Accepted Answer

Amortized mortgage payments are structured in a way to ensure that the borrower pays off both the principal and interest over the life of the mortgage. However, during the early years of the mortgage, the majority of the payment goes towards paying off the interest, with only a small portion going towards the principal. As the mortgage nears its end, the opposite occurs, with more of the payment going towards the principal and less towards the interest. Therefore, the most accurate answer is B, as the borrower makes most of the payment towards the interest during the early life of the mortgage.

The Borrower of an Amortized Mortgage Makes Most of the Payment