Source: CBS News —
Interest is the cost you pay to borrow money. And though it’s just one part of your monthly mortgage payments, it can often amount to significant costs over time and affect how much mortgage you can afford.
Understanding how your mortgage interest rate is calculated is a crucial step in securing a home loan. If you’re shopping for a new home, you’ll want to crunch the numbers to determine what you can afford. A mortgage expert can help you navigate the home-buying process and see what type of loan makes the most sense for you based on your needs.
Here’s what you need to know about mortgage interest, how it is calculated and how it might impact your finances.
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Mortgage payments are comprised of two parts: Principal and interest payments.
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