Your family recently obtained a 30 (360 month) $100,000 fixed rate mortgage. Which of the following
statements is most correct and why? (ignore taxes and transactions costs).
A. The remaining balance after three years will be $100,000 les the total amount of interest paid during the first
B. The proportion of the monthly payment that goes towards repayment of principal will be higher ten years
from now than it will be this year.
C. The monthly payment on the mortgage will steadily decline over time.
D. All of the statements above are correct.
E. None of the statements above is correct
The correct statement is B. The proportion of the monthly payment that goes towards ...
The solution explains some questions relating to mortgage payments