A loan team is about to close a file involving Principal and Interest Payment. Which action should occur first?
Correct Answer
C) 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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