Question: Answer the below questions. (a) When a prepayment is made that is less than the full amount to completely pay off the loan, what happens

Answer the below questions.
(a) When a prepayment is made that is less than the full amount to completely pay off the loan, what happens to future monthly mortgage payments for a fixed-rate mortgage loan?
(b) What is the impact of a prepayment that is less than the amount required to completely pay off a loan?

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a Homeowners often repay all or part of their mortgage balance prior to the scheduled maturity date The amount of the payment made in excess of the monthly mortgage payment is called a prepayment This ... View full answer

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