Finance
A fixed-rate, fully amortized 30-year mortgage has which of the following characteristics?
APayments decrease over time
BPayments are equal each month, with early payments going mostly to interest and later payments going mostly to principal✓ Correct
CThe interest rate adjusts annually
DA large balloon payment is due at the end
Explanation
In a fixed-rate, fully amortized loan, monthly payments are constant throughout the term. Early in the loan, most of each payment is interest; later, more goes to principal.
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