A mortgage loan that is amortized has a fixed payment over a fixed period of years. Each payment has a portion of the payment going towards interest and principal. The longer the loan goes the higher the amount of the payment goes towards principal and a lower amount is charged to interest. Most of the interest paid on an amortized loan is paid in the beginning of the loan. In fact on a 30 year loan you don't even own half of your home until the 24th year. Your best bet is to pay as much as you can in the beginning of the mortgage to save yourself thousands of dollars.
GetPrequalified.com additional articles
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment