Whats included in my payment?
Ryan Ward, Seattle Mortgage Banker, talks about what will be inculded in the payment of a typical 30 year fixed rate loan.
For they majority of borrowers, each monthly payment will go towards the following areas:
- Principal, which is the total outstanding balances of the loan
- Interest, which is the cost of borrowing the money
- Taxes, which are levied on the property from the local goverment
- Insurance, which protects both the lender and owner from losses caused by fire of other natural hazards