21 August 2012

Mortgage 101: Mortgage payments and amortization

Interest and principal costs

It’s necessary to understand
that at first money from each of your mortgage payments is used to pay
the interest on your loan. And only the remaining sum comes to decrease
the principal, which is the exact amount that you’ve borrowed. As a
rule, during the first years of your mortgage the largest part of the
payment is used to cover the interest costs…
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