Finance
In a fixed-rate mortgage, the monthly payment of principal and interest:
AIncreases each year to keep pace with inflation
BRemains the same throughout the loan term, though the proportion of principal vs. interest changes with each payment✓ Correct
CDecreases as the principal balance declines
DIncreases whenever the prime rate increases
Explanation
In a fixed-rate mortgage, the total P&I payment amount stays constant throughout the loan term. However, with each successive payment, a smaller portion goes to interest and a larger portion goes to principal due to amortization.
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