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Why do you pay interest first on a mortgage?
You pay interest first on a mortgage because it is the cost of borrowing money from the lender. By paying the interest first, the lender is compensated for lending you the money before you start paying off the principal amount of the loan.
How much of mortgage payments goes to principal?
Amortized mortgages follow a sliding scale of interest versus principal. During the early years of a loan, a large percentage of your payment goes to paying down the interest amount, and a very small amount, sometimes only a few dollars, goes to lowering the principal. As the loan ages, the proportion changes the other direction, so in the last few years, virtually every dollar you pay goes to pay off the principal balance. Of course, by then, you've paid many thousands of dollars more in interest. For example, if you get a $200,000 mortgage for thirty years, at five or six percent, by the end of thirty years, you'll have paid over $450,000 in interest alone, if you make every payment on a regular basis. This is one reason why it is sometimes a good idea to pay extra dollars against your principal, if you can, especially early on. For example, if you add a the next month's principal amount to your regular monthly payment, in 15 years you'll be able to pay off a 30 year mortgage. Most mortgage companies will send you an "amortization schedule", which details exactly how much of each monthly payment goes towards principal, and how much goes towards interest. The quicker you pay off the principal, the less interest you have to pay, and that can add up to a hundred thousand dollars or more. _______________________________________________________________ You need to keep track of your Amortization schedule the mortgage companies post and updates after each payment. Make sure your payments states "PRINCIPAL PAYMENT ONLY", then have an attorney ready to file suit of damages. I have been paying $500.00 on the 1st and $500.00 on the 15th of each month from military pay while my wife sends in the normal current payment every month. When the Income tax return came in, I added it to the $500.00 PRINCIPAL PAYMENT ONLY that was sent to the mortgage company. The Mortgage Company ignored PRINCIPAL PAYMENT ONLY, and posted it to current payment. After a total of 72 phone calls from Germany to the Mortgage Company in the United States which is not cheap, and all they say is "YEAH, YEAH, TOO BAD" and don't intend to fix it where now my next due payment is May 2010 and this is February, then it is time for attorney to take the records from the Mortgage Companies own website and take it to court. So since talking does not good, maybe a law suit to 1) Clear the mortgage debts completely and 2) Punitive Damages for several million dollars, the mortgage companies will then start treating people right.
Where can one find a comparison of interest rates on a second mortgage?
Lending Tree and Quicken loans are two good places to start when doing a comparison of the interest rates on a second mortgage. Mortgage Calculator is also an interesting place to search.
How do you allocate your loan payment?
To allocate a loan payment, first, determine the total amount due, which typically includes both principal and interest. Start by paying off any interest to avoid penalties and reduce the overall cost of the loan. Then, apply the remaining funds toward the principal balance to decrease the total amount owed and shorten the loan term. If applicable, consider making extra payments toward the principal when possible to save on interest over time.
What is the interest rate for a mortgage from the bank Indymac?
The interest rate for mortgages from IndyMac start from between 2.7% - 3.7%, depending on your yearly fixed rate. This also depends on your annual mortgage payments.
Why do you pay interest first on a mortgage?
You pay interest first on a mortgage because it is the cost of borrowing money from the lender. By paying the interest first, the lender is compensated for lending you the money before you start paying off the principal amount of the loan.
What Is the percent of the principal paid as interest per time period?
It is an increasing percentage as the repayment progresses. At the start, it is mostly interest and very little principal whereas near the end it is mostly principal and little interest.
Where can we find a mortgage amortization schedule?
This mortgage loan calculator - also known as an amortization schedule calculator - lets you estimate your monthly loan repayments. It also determines out how much of your repayments will go towards the principal and how much will go towards interest. Simply input your loan amount, interest rate, loan term and repayment start date then click "Calculate".
How much of mortgage payments goes to principal?
Amortized mortgages follow a sliding scale of interest versus principal. During the early years of a loan, a large percentage of your payment goes to paying down the interest amount, and a very small amount, sometimes only a few dollars, goes to lowering the principal. As the loan ages, the proportion changes the other direction, so in the last few years, virtually every dollar you pay goes to pay off the principal balance. Of course, by then, you've paid many thousands of dollars more in interest. For example, if you get a $200,000 mortgage for thirty years, at five or six percent, by the end of thirty years, you'll have paid over $450,000 in interest alone, if you make every payment on a regular basis. This is one reason why it is sometimes a good idea to pay extra dollars against your principal, if you can, especially early on. For example, if you add a the next month's principal amount to your regular monthly payment, in 15 years you'll be able to pay off a 30 year mortgage. Most mortgage companies will send you an "amortization schedule", which details exactly how much of each monthly payment goes towards principal, and how much goes towards interest. The quicker you pay off the principal, the less interest you have to pay, and that can add up to a hundred thousand dollars or more. _______________________________________________________________ You need to keep track of your Amortization schedule the mortgage companies post and updates after each payment. Make sure your payments states "PRINCIPAL PAYMENT ONLY", then have an attorney ready to file suit of damages. I have been paying $500.00 on the 1st and $500.00 on the 15th of each month from military pay while my wife sends in the normal current payment every month. When the Income tax return came in, I added it to the $500.00 PRINCIPAL PAYMENT ONLY that was sent to the mortgage company. The Mortgage Company ignored PRINCIPAL PAYMENT ONLY, and posted it to current payment. After a total of 72 phone calls from Germany to the Mortgage Company in the United States which is not cheap, and all they say is "YEAH, YEAH, TOO BAD" and don't intend to fix it where now my next due payment is May 2010 and this is February, then it is time for attorney to take the records from the Mortgage Companies own website and take it to court. So since talking does not good, maybe a law suit to 1) Clear the mortgage debts completely and 2) Punitive Damages for several million dollars, the mortgage companies will then start treating people right.
Where can one find a comparison of interest rates on a second mortgage?
Lending Tree and Quicken loans are two good places to start when doing a comparison of the interest rates on a second mortgage. Mortgage Calculator is also an interesting place to search.
How do you allocate your loan payment?
To allocate a loan payment, first, determine the total amount due, which typically includes both principal and interest. Start by paying off any interest to avoid penalties and reduce the overall cost of the loan. Then, apply the remaining funds toward the principal balance to decrease the total amount owed and shorten the loan term. If applicable, consider making extra payments toward the principal when possible to save on interest over time.
What is the interest rate for a mortgage from the bank Indymac?
The interest rate for mortgages from IndyMac start from between 2.7% - 3.7%, depending on your yearly fixed rate. This also depends on your annual mortgage payments.
Your payment is MONTHLY_GRAND_TOTAL for TERM years with a rate of INTEREST_RATE.?
Your payment is MONTHLY_GRAND_TOTAL for TERM years with a rate of INTEREST_RATE.**GRAPH**Mortgage Summary Loan amountLOAN_AMOUNT TermTERM years Interest rateINTEREST_RATE Annual home insuranceYEARLY_HOME_INSURANCE Annual property taxesYEARLY_PROPERTY_TAXES Monthly paymentMONTHLY_PI Monthly payment (PITI)*MONTHLY_PITI Total principal and interest paymentsTOTAL_OF_PAYMENTS Total interestINTEREST_PAID*Principal, Interest, Taxes, Insurance Prepayment ResultsPrincipal prepayments on your mortgage can save you a great deal of interest. They can also shorten the time it takes to pay off your mortgage, in many cases, by several years. PREPAY_MESSAGEPrepayment Summary AmountPREPAY_AMOUNT PREPAY_TYPE Start with paymentPREPAY_STARTS_WITH  Total paymentsPREPAY_TOTAL_OF_PAYMENTS  Total interestPREPAY_INTEREST_PAID  Interest savingsPREPAY_INTEREST_SAVINGS Payment schedule **REPEATING GROUP**
What exactly are homes for rent to own?
Homes that you rent to own are when you start off with just paying rent, not having to worry about falling behind on a mortgage. Eventually, as you become more secure, you switch over until you are paying a mortgage for the home.
What is the lowest interest rate available to refinance a home mortgage?
Interest rates are very low now. However, the rate will vary depending on one's credit rating and income. Currently interest rates start at 3.375% for a standard 30 year fixed mortgage.
What information is needed in order to use a bankrate mortgage calculator?
In order to correctly use a bank rate mortgage calculator one will need to know the amount of their mortgage, the term of the mortgage, interest rate, the start date of the mortgage as well as monthly payments being made.
Pseudocode and flowchart for simple interest calculation?
begin enter Principal amount(Input) enter interest rate(Input) calculate simple interest(Computation/Processing) Display/Show/Print Give sound Simple Interest(output) end By Tomas Naxweka(Namibia)
