Posted on: 03rd Apr, 2004 02:36 am
Principal is the original loan amount specified on your mortgage note. When you make the monthly payments on your mortgage, you are required to pay a part of the principal along with the interest and your taxes and insurance payments. The principal also indicates the outstanding loan balance of your mortgage excluding any accrued interest or other fees.
Your mortgage may also have the option of prepayment. This allows you to make extra payments towards the principal loan amount at regular intervals of time. Such extra payments reduce your principal loan balance. The interest is calculated on the basis of this outstanding balance. So, you will be paying much low interest when the principal balance keeps on reducing. In addition to this, extra payments towards the principal will also help to shorten the loan period.
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Your mortgage may also have the option of prepayment. This allows you to make extra payments towards the principal loan amount at regular intervals of time. Such extra payments reduce your principal loan balance. The interest is calculated on the basis of this outstanding balance. So, you will be paying much low interest when the principal balance keeps on reducing. In addition to this, extra payments towards the principal will also help to shorten the loan period.
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Mortgage Principal
How do I calculate the amortization chart if the monthly payment is $1,103.79 (principle + 6% interest annually). The loan is 47000.00 in 3yrs.
Hi Amy,
I believe it's a fixed rate mortgage. Right? Well, in that case you can find out the amortization chart using the FRM Calculator.
If you have any difficulty in computing, let me know. I will try and help you as much as I can.
Thanks,
Jerry
I believe it's a fixed rate mortgage. Right? Well, in that case you can find out the amortization chart using the FRM Calculator.
If you have any difficulty in computing, let me know. I will try and help you as much as I can.
Thanks,
Jerry
im looking to borrow 60,000 for 30year or a 15 year fixed rate what would be my montly payment
Hi leoonthego,
Your query has been replied to in the given page:
http://www.mortgagefit.com/predeal/about36152.html#155402
Take a look at it. Hope it helps you.
Take care.
Your query has been replied to in the given page:
http://www.mortgagefit.com/predeal/about36152.html#155402
Take a look at it. Hope it helps you.
Take care.