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Mortgage Professor about principal interest: | |||||||||||||||||||||||
Mortgage Prepayment: Is it a Good Investment?
April 19,1999 "At the present time I can afford to double the monthly payment on my 7 5/8% mortgage, which would reduce the length of my loan from 25 to 5 years. However, if I were to deposit the extra payment in my savings account, I would earn 3% interest on it. ... more... Annual Principal Payments on an Interest-Only 2 May 2005 "I realize that I don?t pay principal on an interest-only, but it is important to me to keep the monthly payment down. Yet I get a bonus every year. Would a large payment at year-end make up for the monthly principal payments I do not make during the year ... more... |
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principal interest related definitions |
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Untitled Document
Housing Expense-to-Income Ratio The ratio, expressed as a percentage, which results when a borrower's housing expenses - (PITI - Principal, Interest, Taxes, and Insurance) divided by the gross monthly income. This ratio is sometimes referred to as the top ratio or front end ratio. ... more... Housing Expense-to-Income Ratio Housing Expense-to-Income Ratio The ratio, expressed as a percentage, which results when a borrower's housing expenses - (PITI - Principal, Interest, Taxes, and Insurance) divided by the gross monthly income. This ratio is sometimes referred to as the top ratio or front end ratio. ... more... |
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