Did you know your mortgage payment is comprised of two parts?
One of the main benefits of owning a home is paying your own mortgage instead of your landlord’s. It’s important to know that your mortgage payment consists of two parts – an interest component for borrowing the money and the principal portion that repays the balance of the mortgage.
In today’s low interest rate environment, a $500,000 mortgage results in a monthly payment of $2,044 of which 34.3% of this payment is interest cost. Only $701.70 is interest and the rest of the payment repays the mortgage balance and builds wealth for you in the form of equity in your home!
Imagine paying $2,044 per month or $24,528 per year in rent and having nothing on return or paying the same on a mortgage for your home and paying $8,420.40 in interest to carry the mortgage and build $16,107.60 in wealth over a year period by paying down your mortgage. Strive to be a homeowner!
Contact the Monsters if you need help:
416.480.0234