How to Calculate Mortgage Repayments: A Simple Guide
Understanding mortgage repayments is a critical step in home-buying or real estate investment. Monthly payments typically consist of principal and interest (P&I), with early payments heavily weighted toward interest before gradually shifting toward principal reduction over the loan term.
An amortization schedule reveals this payment breakdown, providing clarity for personal finance planning. Additional components like property taxes or insurance may also factor into monthly obligations, though these vary by lender and location.