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Principal and interest

Do you want to know what Principal and interest means?

 

Principal and interest :
Principal and Interest is an amount of money paid to the lender on a monthly basis. Principal is the portion of the mortgage payment that goes to reduce the outstanding balance of the loan. Interest is the portion of the mortgage payment that goes to pay the finance charge on the outstanding balance of the loan. For the complete monthly payment associated with a loan see PITI.

 

Did you find our interpretation of the phrase Principal and interest handy? If so please use our glossary to look at more explanation of phrases like Principal and interest and many thanks for patronising our DGC Financial.

 

Want to try another one? How about Rebate since you has no bother understanding Principal and interest

 

 

What Not to do when taking a mortgage or loan

Don’t fall for a loan from a door-to-door salesman or home improvement contractor who comes to your home. Don’t take out a loan on your property for anyone else unless you can afford to lose that money forever. Don’t decide whether you can afford a loan by the monthly payments alone. Don’t sign anything that has blank spaces. 

If you’re like most homeowners, your house is the most important and valuable thing you own. The money you’ve put into your home can enable you to borrow money with a home equity loan. Your home secures the loan—unfortunately, you can lose your home if you are unable to make the loan payments.

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