This is a typical mortgage. Here are some things to note:
- This shows a typical 30-year mortgage.
- Your monthly payment equals Principal + Interest.1
- Each month, you pay down your Principal balance, so your monthly Principal portion gets bigger over time.
- Interest: Your interest payment portion is bigger than your principal portion for most of this loan.
- Interest: You will pay more interest than principal on this mortgage if you make all payments on time.
- Most mortgages also include Taxes & Insurance in the monthly mortgage payment. For Homes in Order purposes, these have been omitted as they are expenses you will have whether or not you have a mortgage. So, even when you pay your mortgage off, you will still have to pay Taxes and Insurance. ↩︎