Morgage Reduction Builds Equity

"Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment. On average, each $100,000 of a mortgage will reduce in balance the first year by about $500 in principal, bringing that balance at the end of your first 12 months to $99,500."

Read the full atricle written by Elizabeth Weintraub at About.com.

 

For more information contact...

Matt Thomas
(352) 494-0194
MattThomas@BosshardtRealty.com