Mortgage payment breakdown: How mortgage principal and interest works

Mortgage payment breakdown: How mortgage principal and interest works

A monthly mortgage payment includes at least two parts: an amount that goes towards the principal and a second amount that goes towards interest. When you’re looking at your home loan, it’s important to understand what your mortgage payment is going towards each month and how your lender is calculating this amount. So what is […]

Mortgage APR: The difference between APR and interest rate

Mortgage APR: The difference between APR and interest rate

The annual percentage rate (APR) is designed to show you the total cost of the loan, which can be helpful when comparing loans from different lenders. The annual percentage rate measures both the interest charged as well as any other fees paid at closing that may include: • Origination fees • Private Mortgage Insurance — […]

Mortgage terms: Key definitions you should know when financing a home

Mortgage terms: Key definitions you should know when financing a home

When you’re considering buying a home, there are a number of financial terms that come with the territory. Here’s a quick vocabulary lesson of some of the most important terms you’ll need to know. When you start speaking to a lender or real estate agent, it’s easy to get confused if you don’t already speak […]

Amortization: How mortgage amortization works on your home loan

Amortization: How mortgage amortization works on your home loan

Amortization is the process of paying off a debt, in this case your mortgage, over time through regular payments. Watch and learn more about how it works. In this video Ja Yung, a mortgage banker, explains: “Amortization is the relationship between the principal and interest portion of your payment. As the time goes on, you […]