Whenever you take out a mortgage for any property, whether it is business or for personal means, one is required to pay interest on top of the principal amount that is taken out. It is mainly due to this principal amount that many of us find ourselves having to pay mortgage payments for a longer period of time. On average, most averages are known to work out to last for at least 50+ years. In effect, the longer we pay our mortgage for, the more interest we will be required to pay which in effect can cost us more than we expected. It is for this very reason that many people try to put down a large cash down payment on their home. This in effect not only reduces the amount of principal that is left to be paid but also reduces the amount of interest that is due.
Another way through which a person can reduce the amount of interest that they have to pay on their mortgage is by being able to calculate the principal amount left on your mortgage altogether. This in effect can reduce the time period of your mortgage and save you a lot of money in the process. Trying to calculate such figures on your own can prove to be quite difficult. This is where the affordability calculator comes into play. By simply filling in a few details, the calculator will present you with all the information that you need in order to make informed decisions.
SAMPLE: As an example, pretend your total loan was for $302,000.00 with a 5.000% interest rate. The original loan was for 30 years, but you have already paid on the loan for 60 months. After paying on your loan for 60 months, you will have paid $281,444.18 in interest and only $302,000.00 toward the principal. If you subtract the $302,000.00 you have paid toward the principal from the original loan amount, this leaves you with $0.00 in principal left to be paid.
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