Higher monthly payments, but you pay much less interest over time.
Lower monthly payments, but you pay much more interest over time. You also choose how your interest rate behaves: how does mortgage work when buying a house
Your rate is fixed for a few years, and then fluctuates based on the market. 3. Amortization (The Payment Schedule) Higher monthly payments, but you pay much less
Higher credit scores unlock lower interest rates. In the beginning of your loan, most of
Your interest rate stays exactly the same for the life of the loan.
In the beginning of your loan, most of your monthly payment goes toward paying off the . As the years go on, the math flips. By the end of your loan term, the majority of your payment goes toward paying down the principal . 🚀 3 Steps to Get Started
But what exactly is a mortgage, and how does it work? Let's break down the basics in plain English. 📌 What is a Mortgage? A mortgage is simply a loan used to purchase a home.