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When mortgage payments are made in what way does the interest portion change each month and why?
Each month, the interest portion of the payment decreases and the principal portion of the payment increases. The interest decreases because the outstanding principal balance decreases each month as payments arev made. At the beginning of a loan, the interest portion of a payment is large and the principal is small. Towards the end of the loan, the interest portion is small and the principal portion is larger.
What else can I help you with?
Is mortgage a fixed expense?
Yes, a mortgage is generally considered a fixed expense because it involves regular, predictable monthly payments that remain consistent over the life of the loan, assuming a fixed-rate mortgage. These payments typically cover both principal and interest, and can include property taxes and homeowner's insurance if they are escrowed. However, if you have an adjustable-rate mortgage, your payments may change over time, making it less predictable.
What is a expense that does not change from month to month called?
An expense that does not change from month to month is called a fixed expense. Fixed expenses remain consistent regardless of usage or consumption, such as rent or mortgage payments, insurance premiums, and subscription services. These costs are predictable and essential for budgeting purposes.
Give another example of a fixed cost?
A fixed cost is one that does not change. At least for about a year or so. Good examples of fixed costs would be insurance, rent, periodic load payments, interest paid, fixed permanent employee salaries.
If you owe 2007 taxes have filed set up payments will you still receive stimulus rebate?
Yes...it sounds as if your in complete compliance with an agreed payment plan. You lose nothing (except perhaps the slight added cost/interest change) for being on one.
What expenses listed is a variable expense?
A variable expense is a cost that can fluctuate based on usage or consumption. Examples of variable expenses include groceries, utility bills, and entertainment costs, as these can change from month to month depending on individual choices and consumption levels. In contrast, fixed expenses, like rent or mortgage payments, remain constant regardless of usage.
Why aren't the payments for a 15-year mortgage twice the payments for a 30-year mortgage at the same rate?
With the 15 year term, because you will pay the loan off much quicker, you will not pay nearly as much interest. If you take a look at a mortgage calculator, and change the term back and forth from 15 years to 30 years, you will see the change in interest paid.
What type of mortgage has payments that can change?
varialbe-rate mortgage
What information would a mortgage equity calculator give?
A mortgage equity calculator would provide information on the impact that changes in the mortgage interest rate will have on payments for the mortgage loan someone has taken out. It can be useful to help people predict how much they will be paying when interest rates change.
Why did my mortgage go down?
Your mortgage may have gone down due to a decrease in interest rates, a change in the terms of your loan, or a reduction in your outstanding balance through regular payments.
What type of home mortgage has payments that can change?
varialbe-rate mortgage
How can I calculate the monthly payments for a variable rate mortgage?
To calculate the monthly payments for a variable rate mortgage, you would typically need to know the loan amount, the interest rate, and the loan term. You can use an online mortgage calculator or a formula to determine the monthly payment amount based on these factors. Keep in mind that with a variable rate mortgage, the interest rate can change over time, so your monthly payments may also fluctuate.
What type of home mortgage has payments that CANNOT change?
fixed-rate mortgage
Which loan is better for me: a fixed-rate mortgage or an adjustable-rate mortgage?
A fixed-rate mortgage is generally better for most people because it offers a stable interest rate that won't change over time, providing predictability in monthly payments. An adjustable-rate mortgage may have lower initial rates but can fluctuate, potentially leading to higher payments in the future.
Is mortgage a fixed expense?
Yes, a mortgage is generally considered a fixed expense because it involves regular, predictable monthly payments that remain consistent over the life of the loan, assuming a fixed-rate mortgage. These payments typically cover both principal and interest, and can include property taxes and homeowner's insurance if they are escrowed. However, if you have an adjustable-rate mortgage, your payments may change over time, making it less predictable.
Do you have to inform your mortgage company if you change jobs?
Yes, it is generally recommended to inform your mortgage company if you change jobs, as it can affect your financial situation and ability to make mortgage payments.
Can you explain how an adjustable rate mortgage works?
An adjustable rate mortgage is a type of home loan where the interest rate can change over time. The initial rate is usually lower than a fixed-rate mortgage, but it can increase or decrease based on market conditions. This means that your monthly payments can go up or down, depending on the interest rate changes.
What is adjustable rate mortgage?
The interest rate may change
