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Denver CO First Time Home Buyer Series – What Goes Into a Home Payment (Part 3)

Monday, September 6th, 2010 at 7:44am. 1101 Views, 0 Comments.

first-time-homebuyer-200_214In this article we are going to break down and discuss in a simple fashion the different aspects of a house payment:

Mortgage Payment = Principal + Interest + Property Taxes + Property Insurance + HOA Dues (If They Apply) + Mortgage Insurance (If It Applies)

When purchasing a home, most metro Denver CO home buyers will finance the purchase with a mortgage they have to make payments on. Those payments will usually consist of part principal and part interest.

Interest – The amount allocated to interest each month varies based upon the interest rate and term of the loan.

Principal – A typical loan will have a portion of the monthly payment allocated to reducing the principal balance which allows the loan to eventually be paid off. 

An Item of Note: Many…

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