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Jane has signed a mortgage contract to borrow $250,000 for a new home. Her mortgage is a 30-year fixed mortgage with a 5% interest rate,
Jane has signed a mortgage contract to borrow $250,000 for a new home. Her mortgage is a 30-year fixed mortgage with a 5% interest rate, and she will pay the same amount every month for the next 30 years. During the first year of payments, Jane can expect that ______ of her payments will go towards_______, while during the last year of payments, ______ of her payments will go towards ______.
A) most; interest, most, principal | ||
B) most; principal, most, interest | ||
C) none, principal, all, interest | ||
D) all, principal, none, interest |
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