Assume Your Current Mortgage Payment Is $900 Per Month

question 67

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 payment compared to $900 monthly payments.
• B) The total amount paid (principal and interest) will increase with $1,000 monthly payment compared to $900 monthly payments.
• C) The total interest expense will increase with $1,000 monthly payment compared to $900 monthly payments.
• D) The total principal paid will decrease with $1,000 monthly payment compared to $900 monthly payments.

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