Finance
An amortizing Texas mortgage loan has a fixed payment. Over time, the portion of each payment going to interest:
AStays the same throughout the loan term
BIncreases over time as the loan ages
CDecreases over time as the principal balance is paid down✓ Correct
DFluctuates based on the market rate
Explanation
With a fully amortizing fixed mortgage, each payment is the same amount, but the allocation shifts over time. Early payments are mostly interest; as the principal balance decreases, less interest accrues and more of each payment goes to principal.
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