If you have an interest only payment plan only then the total amount paid goes to the interest. Otherwise one part has to go to the principle as well.
Try to find out from Green Tree, as to how much from your payments per month do they add to the interest and what goes to the principle. Total money cannot go to the interest if you are not on an interest only plan.
Your payment is a fixed amount. However, in the early years of a mortgage, because the principal is so large, the interest on the principal is greater. As you pay down the principal, more of your payment is applied to the principal than in previous months. It is a SLOOWWW process...the word mortgage literally means a death vow.
Is it true that more of the payment goes to the principle after some months? I think it should go to the interest. :)
Jennings are you sure that full amount is going to interest? The figures that you have given say that a lions share is going to the interest but the principle payment is also growing. This is okay in that case. Like morningstar said mortgage is really a slow process. Death vow is a good word for it . :D
Can monthly payment go to interest only?
Hi Jennings,
Welcome onboard
If you have an interest only payment plan only then the total amount paid goes to the interest. Otherwise one part has to go to the principle as well.
Try to find out from Green Tree, as to how much from your payments per month do they add to the interest and what goes to the principle. Total money cannot go to the interest if you are not on an interest only plan.
simple intrest loan
Sounds like you have a new loan.
Your payment is a fixed amount. However, in the early years of a mortgage, because the principal is so large, the interest on the principal is greater. As you pay down the principal, more of your payment is applied to the principal than in previous months. It is a SLOOWWW process...the word mortgage literally means a death vow.
Hi
Hi
Is it true that more of the payment goes to the principle after some months? I think it should go to the interest. :)
Jennings are you sure that full amount is going to interest? The figures that you have given say that a lions share is going to the interest but the principle payment is also growing. This is okay in that case. Like morningstar said mortgage is really a slow process. Death vow is a good word for it . :D
Mortgage
I agree,
It is such a long process. It feels like a never ending show has started. The principle is so huge and on top of that the interest is even higher.
Jennings good luck. All you need to do is make your payments on time and definitely no default ever.
Thanks
Justin :)