Which of the following addresses principal and interest payments on a mortgage loan?

The amortization schedule is the correct choice as it specifically outlines the breakdown of principal and interest payments over the life of a mortgage loan. This schedule provides a detailed table that shows each payment, how much of it goes towards the interest component, how much goes towards reducing the principal balance, and the remaining balance after each payment.

As borrowers make regular payments, the interest portion decreases over time while the principal portion increases, which is a fundamental feature of amortizing loans. This process is essential for understanding how long it will take to pay off the loan and how much total interest will be paid over the term of the loan.

In contrast, a loan estimate provides a summary of the loan terms, costs, and estimated payments but does not offer a detailed breakdown of principal and interest over time. The payment plan may refer to the agreement or strategy for making payments, but lacks the structured details that an amortization schedule provides. The payment schedule could indicate the timing of payments but does not specifically address how each payment is divided between principal and interest.