How Does Mortgage Work When Buying A House -

Your interest rate stays exactly the same for the life of the loan.

When you make a monthly mortgage payment, your money usually goes toward four distinct things. Financial experts use the acronym to describe them: Principal: The actual amount of money you borrowed. how does mortgage work when buying a house

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 Your interest rate stays exactly the same for

You will choose a timeline to pay the loan back, known as the "term." In the beginning of your loan, most of

Always get a pre-approval letter from a lender before you start looking at houses so you know exactly what you can afford!

Your rate is fixed for a few years, and then fluctuates based on the market. 3. Amortization (The Payment Schedule)