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.
Answer: A
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