Finance
A Washington mortgage servicer who receives a monthly payment applies it in which order?
APrincipal first, then interest, then impounds
BInterest first, then principal reduction, then impounds (taxes/insurance)✓ Correct
CImpounds first, then interest, then principal
DAll payments are applied equally to all components
Explanation
Mortgage payments are typically applied first to interest owed (accrued interest), then to principal reduction, then to impound (escrow) accounts for taxes and insurance. This order is specified in the loan documents.
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