Consider a typical 30-year fixed-rate mortgage. During which of the following years is the highest portion of each payment applied toward interest? Thirtieth year Tenth year Twentieth year First year
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At the beginning of the mortgage term, the principal balance is at its highest, so the interest portion of the payment will also be at its highest. As you make payments, the principal balance decreases, and so does the interest portion of each payment. Show more…
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