ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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insurance
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expense
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mortgage
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income and expense statement
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Detailed explanation-1: -Your monthly mortgage payment typically has four parts: loan principal, loan interest, taxes, and insurance. If you’ve never owned a home before, you may be surprised that a mortgage payment has that many components. By including these costs in one monthly payment, your lender helps make things easier for you.
Detailed explanation-2: -When you take out a mortgage, you’re borrowing money to buy or refinance a home. You make regular payments to repay this loan, usually monthly.
Detailed explanation-3: -The standard mortgage in the US accrues interest monthly, meaning that the amount due the lender is calculated a month at a time. There are some mortgages, however, on which interest accrues daily.
Detailed explanation-4: -The amount of interest paid with each monthly mortgage payment is the annual interest rate divided by 12, multiplied by the outstanding mortgage principal. Using the mortgage example above, the annual rate of 6 percent divided by 12 provides a monthly rate of 0.5 percent.