Multiple Choice
Assume your current mortgage payment is $900 per month.If you begin to pay $1,000 per month (with the extra $100 per month going to principal) ,which of the following will be TRUE?
A) The mortgage balance will decrease faster with $1,000 monthly payments compared to $900 monthly payments.
B) The total paid (principal and interest) will increase with $1,000 monthly payments compared to $900 monthly payments.
C) The total interest expense will increase with $1,000 monthly payments compared to $900 monthly payments.
D) The total principal paid will decrease with $1,000 monthly payments compared to $900 monthly payments.
E) The time until your mortgage is paid off will increase with $1,000 monthly payments compared to $900 monthly payments.
Correct Answer:
Verified
Correct Answer:
Verified
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