What I want to do with this video is explain what a mortgage is but I think most of us have a least a general sense of it. But even better than that actually go into the numbers and understand a little bit of what you are actually doing when you’re paying a mortgage, what it’s made up of and how much of it is interest versus how much of it is actually paying down the loan.

A mortgage is likely to be the largest, longest-term loan you’ll ever take out, to buy the biggest asset you’ll ever own – your home. The more you understand about how a mortgage works, the better decision will be to select the mortgage that’s right for you. A mortgage is a loan from a bank.

Each month, part of your monthly payment will go toward paying off that principal, or mortgage balance, and part will go toward interest on the.

Except for simple interest mortgages, the accounting for amortized home loans assumes that there are only 12 days in a year, consisting of the first day of each month, with accounting beginning on the first day of the month following the day the loan closes, and the first monthly payment due the firset day of the month after that.

Home Fixed Interest Rates Best home equity loans of 2019 | U.S. News – There is an interest-only fixed-rate home equity loan for up to 80 percent of your home’s equity with 15- and 20-year terms. drawbacks: navy Federal Credit Union membership is required to qualify for home equity products.

Amortizing vs Simple Interest Loans Use our mortgage calculator to work out your repayments. Get a key facts sheet : Ask the lender for a key facts sheet for each loan you are considering, and compare interest rates and fees. Choose your features: Typically, the interest rate on a ‘no-frills’ loan will be lower than on one that offers more features.

What I want to do with this video is explain what a mortgage is but I think most of us have a least a general sense of it. But even better than that actually go into the numbers and understand a little bit of what you are actually doing when you’re paying a mortgage, what it’s made up of and how much of it is interest versus how much of it is actually paying down the loan.

The amount you borrow with your mortgage is known as the principal. Each month, part of your monthly payment will go toward paying off that principal, or mortgage balance, and part will go toward interest on the loan. Interest is what the lender charges you for lending you money.

How Does A 30 Year Mortgage Work So, 30 years, it’s going to be a 30-year fixed rate mortgage, fixed rate, fixed rate, which means the interest rate won’t change. We’ll talk about that in a little bit. This 5.5 percent that I am paying on my, on the money that I borrowed will not change over the course of the 30 years.