A policy analyst is reviewing a mortgage file during an Amortization and Payment Structure review. Which statement correctly handles Amortization and Payment Structure?
Correct Answer
A) Use the amortization schedule to separate principal and interest
Fixed-rate mortgages use a constant interest rate and amortizing principal-and-interest schedule unless otherwise structured. The best answer is "Use the amortization schedule to separate principal and interest".
Why This Is the Correct Answer
Fixed-rate mortgages use a constant interest rate and amortizing principal-and-interest schedule unless otherwise structured. The best answer is "Use the amortization schedule to separate principal and interest".
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