St. Louis Mortgage Rate Update; How does amortization work?

By committing to a mortgage loan, the borrower is entering into a financial agreement with a lender to pay back the mortgage money, with interest, over a set period of time. The borrower’s monthly mortgage payment may change over time depending on the type of loan (Fixed, ARM, Interest Only, etc.). However, for this article, we will address the typical 30 year fixed Principal and Interest loan program. So…

Once the loan closes, over the next 360 months, the borrower will pay the same amount in Principal + Interest (P + I) each payment. As each month passes and the monthly P+I payment is made, the make up of the P + I will Continue reading “St. Louis Mortgage Rate Update; How does amortization work?