Finance
A Colorado buyer's mortgage principal balance after the first payment is typically:
AA. The same as the original loan amount
BB. Slightly less than the original loan amount, as a portion of the first payment reduces the principal✓ Correct
CC. Much less because the first payment is all principal
DD. More than the original loan amount
Explanation
In a standard amortizing mortgage, each payment consists of interest on the outstanding balance plus a small principal reduction. In early payments (when the balance is high), most of the payment is interest with only a small portion going to principal.
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