The monthly payment amount shown includes only principal and interest. When comparing with other offers please take this into consideration.
When you get a loan for a major purchase, you will be expected to make a down payment, as well as repay the amount you borrow plus interest. Mostly likely, your repayment schedule will be divided into months for as long as the life of the loan as specifiedin your contract.
Your monthly payment will include principal which is the amount of debt, not counting interest, left on a loan. Each month, if you make your payments as you are expected, the principal owed will decrease and your equity will increase.
Your monthly payment will also take into account some interest. Interest is a charge paid for borrowing money. Interest is usually expressed as a percentage of the amount borrowed or interest rate.
There are some things you can do to keep your monthly payments manageable. First, you should shop around for the best interest rates. The lower the interest rate, the lower your monthly payment will be, so keep you eye on the market. You can also make a significant down payment to keep your monthly payments low. The bigger the down payment, the lower your monthly payments will be, so make a savings plan.
You can crunch some numbers to figure out your monthly payment with PI with our Mortgage Payment Calculator..
July 14, 2006
