What Is Amortization? How Much Am I Really Paying for a Home?Posted by Jen Dollar on
You may be ready to buy a home. You know that you need a low interest rate on the home loan. You know you need a down payment. You even know what to expect when it comes to the monthly payment. But have you taken the time to consider what amortization is? Mortgage loan amortization is simply a term that discusses how much of the loan you are going to pay in principal (the amount you actually borrowed) compared to interest ( the fee for doing that borrowing.) It is important to understand what this means before you buy a home.
Your Monthly Payment
When you work with your mortgage lender, he or she will likely talk to you closely about your monthly payment. He or she will break down the amount you'll pay each month. However, you'll also want to see…
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