What Effect Does Paying an Extra Small Bit of Principal

question 53

Multiple Choice

What effect does paying an extra small bit of principal on a mortgage have on the life of a 30 year loan?

• A)It has no impact on amount of interest paid but shortens the length of the loan.
• B)It saves money in interest and shortens the length of the loan.
• C)It increases the amount of interest paid and lengthens the length of the loan.
• D)It has no impact on either interest or life span of the loan.