Loan Amortization Calculation Methods

It goes toward paying interest only

It goes toward a borrower's savings account

It goes toward paying down the loan principal (correct)

It is refunded to the borrower

Between maintenance fees and utilities

Between interest and the loan principal (correct)

Between insurance and taxes

Between principal and escrow

Higher monthly payments compared to amortized loans

No need for final repayment

Balloon payment at the beginning of the loan term

Interest-only payments during the loan period (correct)

<p>By making additional payments throughout the loan term</p> Signup and view all the answers

<p>To track interest and principal payments over time</p> Signup and view all the answers