What percent of house payments go toward principal?

Answer 1

poster four give you the complete answer!!!!

Answer 2

The answer to this question is that not a certain percent of the amount paid goes to principal.

This is how interest is calculated each month and how the principal is affected.

balance
x apr

divided by 360 or 365

multiplied by the number of days since you last paid

this is the interest due this payment period (month)
***
subtract the interest due from the total paid (less any escrow)
note: not all home loans have escrow
******
this is the principal paid this month
****
subtract the principal paid from the balance owed and then use this new balance for the next payment.

Hence - as the balance reduces, less interest is generated.
This is why it is always a good idea to pay more than is due if possible. The added amount reduces the balance more quickly; and again - the lower the balance, the less interest it generates.

Clear as mud?

Hope this helps.

Answer 3

Even given the terms of YOUR loan, the answer is different for EVERY payment. Your payment goes to 3 things. Principle, interest, and an escrow account to cover taxes, insurance, and sometimes other related costs. The escrow amount is computed each year based on the expected payments divided by 12. The interest is calculated each month by multiplying your interest rate to the outstanding principle amount. The principle amount is whatever is left of your payment after escrow and interest. As the principle is reduced, the interest portion of each payment goes down and the principle portion goes up. During the first few years of a typical mortgage, less than 10% of the payment goes to principle. During the last few years, more then 90% does.

At around 2/3 of the way though your loan, the principle and interest are roughly equal.

Answer 4

Mortgage loans use the declining balance method, so in the early years most of your payment is interest. As the remaining balance on the loan declines, more and more of the payment goes to principal.

Answer 5

There is no one answer...
Go to a lenders website & get a mortgage printout with your varaibles. That will tell you the amount of principle paid each month, but there is no "percent of payments".