940 Year Fixed Rate Mortgage Amortization - MyHomeLoanTools.com

# 40 Year Fixed Rate Mortgage Amortization Example

The 40 year fixed rate mortgage offers monthly payments that are predictable since the interest rate stays the same over the life of loan and lower since they are amortized over 40 years.

In this example, we compare the amortization schedules for a \$300,000 40 year fixed mortgage at a 4% annual interest rate to a 30 year fixed mortgage at 3.5%. After reviewing this example, enter your desired mortgage amount and term into the mortgage amortization calculator to see how the principal and interest change over time and help you decide which mortgage best meets your needs.

Amortization Calculator
This 40 year fixed has a monthly payment that is approximately \$93 lower than the 30 year fixed. However, the 40 year fixed would require you to pay approximately \$116,861 more in total interest over the life of the loan. If you keep the mortgage for 15 years before refinancing or selling the home, you would pay approximately \$32,296 more in total interest for the 40 year fixed. As you can see, the length of time you plan to keep your mortgage can have a real impact on which type of mortgage will be most appropriate for you.

Note how little the principal balance changes in the early months of the mortgage and how much of it changes in the final years of the mortgage. This is why extra payments made early on can result in great savings.

MonthPrincipal
Interest
Payment
InterestPrincipalBalance
1\$1,254\$1,000\$254\$299,746
2\$1,254\$999\$255\$299,492
3\$1,254\$998\$256\$299,236
4\$1,254\$997\$256\$298,980
5\$1,254\$997\$257\$298,722
6\$1,254\$996\$258\$298,464
7\$1,254\$995\$259\$298,205
8\$1,254\$994\$260\$297,946
9\$1,254\$993\$261\$297,685
10\$1,254\$992\$262\$297,423
11\$1,254\$991\$262\$297,161
12\$1,254\$991\$263\$296,898
Year 1\$15,046\$11,944\$3,102
13\$1,254\$990\$264\$296,634
14\$1,254\$989\$265\$296,368
15\$1,254\$988\$266\$296,103
16\$1,254\$987\$267\$295,836
17\$1,254\$986\$268\$295,568
18\$1,254\$985\$269\$295,299
19\$1,254\$984\$269\$295,030
20\$1,254\$983\$270\$294,760
21\$1,254\$983\$271\$294,488
22\$1,254\$982\$272\$294,216
23\$1,254\$981\$273\$293,943
24\$1,254\$980\$274\$293,669
Year 2\$15,046\$11,817\$3,229
25\$1,254\$979\$275\$293,394
26\$1,254\$978\$276\$293,118
27\$1,254\$977\$277\$292,841
28\$1,254\$976\$278\$292,564
29\$1,254\$975\$279\$292,285
30\$1,254\$974\$280\$292,006
31\$1,254\$973\$280\$291,725
32\$1,254\$972\$281\$291,444
33\$1,254\$971\$282\$291,161
34\$1,254\$971\$283\$290,878
35\$1,254\$970\$284\$290,594
36\$1,254\$969\$285\$290,309
Year 3\$15,046\$11,686\$3,360
37\$1,254\$968\$286\$290,023
38\$1,254\$967\$287\$289,736
39\$1,254\$966\$288\$289,448
40\$1,254\$965\$289\$289,159
41\$1,254\$964\$290\$288,869
42\$1,254\$963\$291\$288,578
43\$1,254\$962\$292\$288,286
44\$1,254\$961\$293\$287,993
45\$1,254\$960\$294\$287,699
46\$1,254\$959\$295\$287,404
47\$1,254\$958\$296\$287,108
48\$1,254\$957\$297\$286,812
Year 4\$15,046\$11,549\$3,497
49\$1,254\$956\$298\$286,514
50\$1,254\$955\$299\$286,215
51\$1,254\$954\$300\$285,915
52\$1,254\$953\$301\$285,615
53\$1,254\$952\$302\$285,313
54\$1,254\$951\$303\$285,010
55\$1,254\$950\$304\$284,706
56\$1,254\$949\$305\$284,401
57\$1,254\$948\$306\$284,096
58\$1,254\$947\$307\$283,789
59\$1,254\$946\$308\$283,481
60\$1,254\$945\$309\$283,172
Year 5\$15,046\$11,406\$3,640
61\$1,254\$944\$310\$282,862
62\$1,254\$943\$311\$282,551
63\$1,254\$942\$312\$282,239
64\$1,254\$941\$313\$281,926
65\$1,254\$940\$314\$281,612
66\$1,254\$939\$315\$281,297
67\$1,254\$938\$316\$280,981
68\$1,254\$937\$317\$280,664
69\$1,254\$936\$318\$280,345
70\$1,254\$934\$319\$280,026
71\$1,254\$933\$320\$279,706
72\$1,254\$932\$321\$279,384
Year 6\$15,046\$11,258\$3,788
73\$1,254\$931\$323\$279,062
74\$1,254\$930\$324\$278,738
75\$1,254\$929\$325\$278,413
76\$1,254\$928\$326\$278,087
77\$1,254\$927\$327\$277,761
78\$1,254\$926\$328\$277,433
79\$1,254\$925\$329\$277,104
80\$1,254\$924\$330\$276,774
81\$1,254\$923\$331\$276,442
82\$1,254\$921\$332\$276,110
83\$1,254\$920\$333\$275,776
84\$1,254\$919\$335\$275,442
Year 7\$15,046\$11,104\$3,942
85\$1,254\$918\$336\$275,106
86\$1,254\$917\$337\$274,769
87\$1,254\$916\$338\$274,431
88\$1,254\$915\$339\$274,092
89\$1,254\$914\$340\$273,752
90\$1,254\$913\$341\$273,411
91\$1,254\$911\$342\$273,068
92\$1,254\$910\$344\$272,725
93\$1,254\$909\$345\$272,380
94\$1,254\$908\$346\$272,034
95\$1,254\$907\$347\$271,687
96\$1,254\$906\$348\$271,339
Year 8\$15,046\$10,943\$4,103
97\$1,254\$904\$349\$270,990
98\$1,254\$903\$351\$270,639
99\$1,254\$902\$352\$270,287
100\$1,254\$901\$353\$269,935
101\$1,254\$900\$354\$269,581
102\$1,254\$899\$355\$269,225
103\$1,254\$897\$356\$268,869
104\$1,254\$896\$358\$268,511
105\$1,254\$895\$359\$268,153
106\$1,254\$894\$360\$267,793
107\$1,254\$893\$361\$267,431
108\$1,254\$891\$362\$267,069
Year 9\$15,046\$10,776\$4,270
109\$1,254\$890\$364\$266,705
110\$1,254\$889\$365\$266,341
111\$1,254\$888\$366\$265,975
112\$1,254\$887\$367\$265,607
113\$1,254\$885\$368\$265,239
114\$1,254\$884\$370\$264,869
115\$1,254\$883\$371\$264,498
116\$1,254\$882\$372\$264,126
117\$1,254\$880\$373\$263,753
118\$1,254\$879\$375\$263,378
119\$1,254\$878\$376\$263,002
120\$1,254\$877\$377\$262,625
Year 10\$15,046\$10,602\$4,444
121\$1,254\$875\$378\$262,247
122\$1,254\$874\$380\$261,867
123\$1,254\$873\$381\$261,486
124\$1,254\$872\$382\$261,104
125\$1,254\$870\$383\$260,720
126\$1,254\$869\$385\$260,336
127\$1,254\$868\$386\$259,950
128\$1,254\$866\$387\$259,562
129\$1,254\$865\$389\$259,174
130\$1,254\$864\$390\$258,784
131\$1,254\$863\$391\$258,393
132\$1,254\$861\$393\$258,000
Year 11\$15,046\$10,421\$4,625
133\$1,254\$860\$394\$257,606
134\$1,254\$859\$395\$257,211
135\$1,254\$857\$396\$256,815
136\$1,254\$856\$398\$256,417
137\$1,254\$855\$399\$256,018
138\$1,254\$853\$400\$255,617
139\$1,254\$852\$402\$255,216
140\$1,254\$851\$403\$254,813
141\$1,254\$849\$404\$254,408
142\$1,254\$848\$406\$254,002
143\$1,254\$847\$407\$253,595
144\$1,254\$845\$408\$253,187
Year 12\$15,046\$10,232\$4,813
145\$1,254\$844\$410\$252,777
146\$1,254\$843\$411\$252,366
147\$1,254\$841\$413\$251,953
148\$1,254\$840\$414\$251,539
149\$1,254\$838\$415\$251,124
150\$1,254\$837\$417\$250,707
151\$1,254\$836\$418\$250,289
152\$1,254\$834\$420\$249,869
153\$1,254\$833\$421\$249,448
154\$1,254\$831\$422\$249,026
155\$1,254\$830\$424\$248,602
156\$1,254\$829\$425\$248,177
Year 13\$15,046\$10,036\$5,010
157\$1,254\$827\$427\$247,751
158\$1,254\$826\$428\$247,323
159\$1,254\$824\$429\$246,893
160\$1,254\$823\$431\$246,462
161\$1,254\$822\$432\$246,030
162\$1,254\$820\$434\$245,596
163\$1,254\$819\$435\$245,161
164\$1,254\$817\$437\$244,725
165\$1,254\$816\$438\$244,286
166\$1,254\$814\$440\$243,847
167\$1,254\$813\$441\$243,406
168\$1,254\$811\$442\$242,963
Year 14\$15,046\$9,832\$5,214
169\$1,254\$810\$444\$242,520
170\$1,254\$808\$445\$242,074
171\$1,254\$807\$447\$241,627
172\$1,254\$805\$448\$241,179
173\$1,254\$804\$450\$240,729
174\$1,254\$802\$451\$240,277
175\$1,254\$801\$453\$239,825
176\$1,254\$799\$454\$239,370
177\$1,254\$798\$456\$238,914
178\$1,254\$796\$457\$238,457
179\$1,254\$795\$459\$237,998
180\$1,254\$793\$460\$237,537
Year 15\$15,046\$9,620\$5,426
181\$1,254\$792\$462\$237,075
182\$1,254\$790\$464\$236,612
183\$1,254\$789\$465\$236,147
184\$1,254\$787\$467\$235,680
185\$1,254\$786\$468\$235,212
186\$1,254\$784\$470\$234,742
187\$1,254\$782\$471\$234,271
188\$1,254\$781\$473\$233,798
189\$1,254\$779\$474\$233,323
190\$1,254\$778\$476\$232,847
191\$1,254\$776\$478\$232,370
192\$1,254\$775\$479\$231,890
Year 16\$15,046\$9,399\$5,647
193\$1,254\$773\$481\$231,409
194\$1,254\$771\$482\$230,927
195\$1,254\$770\$484\$230,443
196\$1,254\$768\$486\$229,957
197\$1,254\$767\$487\$229,470
198\$1,254\$765\$489\$228,981
199\$1,254\$763\$491\$228,490
200\$1,254\$762\$492\$227,998
201\$1,254\$760\$494\$227,504
202\$1,254\$758\$495\$227,009
203\$1,254\$757\$497\$226,512
204\$1,254\$755\$499\$226,013
Year 17\$15,046\$9,169\$5,877
205\$1,254\$753\$500\$225,513
206\$1,254\$752\$502\$225,010
207\$1,254\$750\$504\$224,507
208\$1,254\$748\$505\$224,001
209\$1,254\$747\$507\$223,494
210\$1,254\$745\$509\$222,985
211\$1,254\$743\$511\$222,475
212\$1,254\$742\$512\$221,962
213\$1,254\$740\$514\$221,449
214\$1,254\$738\$516\$220,933
215\$1,254\$736\$517\$220,416
216\$1,254\$735\$519\$219,896
Year 18\$15,046\$8,929\$6,117
217\$1,254\$733\$521\$219,376
218\$1,254\$731\$523\$218,853
219\$1,254\$730\$524\$218,329
220\$1,254\$728\$526\$217,803
221\$1,254\$726\$528\$217,275
222\$1,254\$724\$530\$216,745
223\$1,254\$722\$531\$216,214
224\$1,254\$721\$533\$215,681
225\$1,254\$719\$535\$215,146
226\$1,254\$717\$537\$214,609
227\$1,254\$715\$538\$214,071
228\$1,254\$714\$540\$213,531
Year 19\$15,046\$8,680\$6,366
229\$1,254\$712\$542\$212,988
230\$1,254\$710\$544\$212,445
231\$1,254\$708\$546\$211,899
232\$1,254\$706\$547\$211,351
233\$1,254\$704\$549\$210,802
234\$1,254\$703\$551\$210,251
235\$1,254\$701\$553\$209,698
236\$1,254\$699\$555\$209,143
237\$1,254\$697\$557\$208,587
238\$1,254\$695\$559\$208,028
239\$1,254\$693\$560\$207,468
240\$1,254\$692\$562\$206,905
Year 20\$15,046\$8,421\$6,625
241\$1,254\$690\$564\$206,341
242\$1,254\$688\$566\$205,775
243\$1,254\$686\$568\$205,207
244\$1,254\$684\$570\$204,637
245\$1,254\$682\$572\$204,066
246\$1,254\$680\$574\$203,492
247\$1,254\$678\$576\$202,917
248\$1,254\$676\$577\$202,339
249\$1,254\$674\$579\$201,760
250\$1,254\$673\$581\$201,179
251\$1,254\$671\$583\$200,595
252\$1,254\$669\$585\$200,010
Year 21\$15,046\$8,151\$6,895
253\$1,254\$667\$587\$199,423
254\$1,254\$665\$589\$198,834
255\$1,254\$663\$591\$198,243
256\$1,254\$661\$593\$197,650
257\$1,254\$659\$595\$197,055
258\$1,254\$657\$597\$196,458
259\$1,254\$655\$599\$195,859
260\$1,254\$653\$601\$195,258
261\$1,254\$651\$603\$194,655
262\$1,254\$649\$605\$194,050
263\$1,254\$647\$607\$193,443
264\$1,254\$645\$609\$192,834
Year 22\$15,046\$7,870\$7,176
265\$1,254\$643\$611\$192,223
266\$1,254\$641\$613\$191,610
267\$1,254\$639\$615\$190,995
268\$1,254\$637\$617\$190,378
269\$1,254\$635\$619\$189,758
270\$1,254\$633\$621\$189,137
271\$1,254\$630\$623\$188,514
272\$1,254\$628\$625\$187,888
273\$1,254\$626\$628\$187,261
274\$1,254\$624\$630\$186,631
275\$1,254\$622\$632\$186,000
276\$1,254\$620\$634\$185,366
Year 23\$15,046\$7,577\$7,468
277\$1,254\$618\$636\$184,730
278\$1,254\$616\$638\$184,092
279\$1,254\$614\$640\$183,452
280\$1,254\$612\$642\$182,809
281\$1,254\$609\$644\$182,165
282\$1,254\$607\$647\$181,518
283\$1,254\$605\$649\$180,869
284\$1,254\$603\$651\$180,218
285\$1,254\$601\$653\$179,565
286\$1,254\$599\$655\$178,910
287\$1,254\$596\$657\$178,253
288\$1,254\$594\$660\$177,593
Year 24\$15,046\$7,273\$7,773
289\$1,254\$592\$662\$176,931
290\$1,254\$590\$664\$176,267
291\$1,254\$588\$666\$175,601
292\$1,254\$585\$668\$174,932
293\$1,254\$583\$671\$174,262
294\$1,254\$581\$673\$173,589
295\$1,254\$579\$675\$172,914
296\$1,254\$576\$677\$172,236
297\$1,254\$574\$680\$171,556
298\$1,254\$572\$682\$170,874
299\$1,254\$570\$684\$170,190
300\$1,254\$567\$687\$169,504
Year 25\$15,046\$6,956\$8,089
301\$1,254\$565\$689\$168,815
302\$1,254\$563\$691\$168,124
303\$1,254\$560\$693\$167,430
304\$1,254\$558\$696\$166,735
305\$1,254\$556\$698\$166,037
306\$1,254\$553\$700\$165,336
307\$1,254\$551\$703\$164,634
308\$1,254\$549\$705\$163,929
309\$1,254\$546\$707\$163,221
310\$1,254\$544\$710\$162,511
311\$1,254\$542\$712\$161,799
312\$1,254\$539\$714\$161,085
Year 26\$15,046\$6,627\$8,419
313\$1,254\$537\$717\$160,368
314\$1,254\$535\$719\$159,649
315\$1,254\$532\$722\$158,927
316\$1,254\$530\$724\$158,203
317\$1,254\$527\$726\$157,476
318\$1,254\$525\$729\$156,748
319\$1,254\$522\$731\$156,016
320\$1,254\$520\$734\$155,282
321\$1,254\$518\$736\$154,546
322\$1,254\$515\$739\$153,808
323\$1,254\$513\$741\$153,066
324\$1,254\$510\$744\$152,323
Year 27\$15,046\$6,284\$8,762
325\$1,254\$508\$746\$151,577
326\$1,254\$505\$749\$150,828
327\$1,254\$503\$751\$150,077
328\$1,254\$500\$754\$149,324
329\$1,254\$498\$756\$148,568
330\$1,254\$495\$759\$147,809
331\$1,254\$493\$761\$147,048
332\$1,254\$490\$764\$146,284
333\$1,254\$488\$766\$145,518
334\$1,254\$485\$769\$144,749
335\$1,254\$482\$771\$143,978
336\$1,254\$480\$774\$143,204
Year 28\$15,046\$5,927\$9,119
337\$1,254\$477\$776\$142,427
338\$1,254\$475\$779\$141,648
339\$1,254\$472\$782\$140,867
340\$1,254\$470\$784\$140,082
341\$1,254\$467\$787\$139,296
342\$1,254\$464\$790\$138,506
343\$1,254\$462\$792\$137,714
344\$1,254\$459\$795\$136,919
345\$1,254\$456\$797\$136,122
346\$1,254\$454\$800\$135,322
347\$1,254\$451\$803\$134,519
348\$1,254\$448\$805\$133,714
Year 29\$15,046\$5,555\$9,490
349\$1,254\$446\$808\$132,905
350\$1,254\$443\$811\$132,095
351\$1,254\$440\$814\$131,281
352\$1,254\$438\$816\$130,465
353\$1,254\$435\$819\$129,646
354\$1,254\$432\$822\$128,824
355\$1,254\$429\$824\$128,000
356\$1,254\$427\$827\$127,173
357\$1,254\$424\$830\$126,343
358\$1,254\$421\$833\$125,510
359\$1,254\$418\$835\$124,675
360\$1,254\$416\$838\$123,836
Year 30\$15,046\$5,169\$9,877
361\$1,254\$413\$841\$122,995
362\$1,254\$410\$844\$122,152
363\$1,254\$407\$847\$121,305
364\$1,254\$404\$849\$120,455
365\$1,254\$402\$852\$119,603
366\$1,254\$399\$855\$118,748
367\$1,254\$396\$858\$117,890
368\$1,254\$393\$861\$117,029
369\$1,254\$390\$864\$116,165
370\$1,254\$387\$867\$115,299
371\$1,254\$384\$869\$114,429
372\$1,254\$381\$872\$113,557
Year 31\$15,046\$4,766\$10,279
373\$1,254\$379\$875\$112,682
374\$1,254\$376\$878\$111,803
375\$1,254\$373\$881\$110,922
376\$1,254\$370\$884\$110,038
377\$1,254\$367\$887\$109,151
378\$1,254\$364\$890\$108,261
379\$1,254\$361\$893\$107,368
380\$1,254\$358\$896\$106,472
381\$1,254\$355\$899\$105,573
382\$1,254\$352\$902\$104,672
383\$1,254\$349\$905\$103,767
384\$1,254\$346\$908\$102,859
Year 32\$15,046\$4,348\$10,698
385\$1,254\$343\$911\$101,948
386\$1,254\$340\$914\$101,034
387\$1,254\$337\$917\$100,117
388\$1,254\$334\$920\$99,197
389\$1,254\$331\$923\$98,273
390\$1,254\$328\$926\$97,347
391\$1,254\$324\$929\$96,418
392\$1,254\$321\$932\$95,485
393\$1,254\$318\$936\$94,550
394\$1,254\$315\$939\$93,611
395\$1,254\$312\$942\$92,670
396\$1,254\$309\$945\$91,725
Year 33\$15,046\$3,912\$11,134
397\$1,254\$306\$948\$90,777
398\$1,254\$303\$951\$89,825
399\$1,254\$299\$954\$88,871
400\$1,254\$296\$958\$87,913
401\$1,254\$293\$961\$86,953
402\$1,254\$290\$964\$85,989
403\$1,254\$287\$967\$85,021
404\$1,254\$283\$970\$84,051
405\$1,254\$280\$974\$83,077
406\$1,254\$277\$977\$82,100
407\$1,254\$274\$980\$81,120
408\$1,254\$270\$983\$80,137
Year 34\$15,046\$3,458\$11,588
409\$1,254\$267\$987\$79,150
410\$1,254\$264\$990\$78,160
411\$1,254\$261\$993\$77,167
412\$1,254\$257\$997\$76,170
413\$1,254\$254\$1,000\$75,170
414\$1,254\$251\$1,003\$74,167
415\$1,254\$247\$1,007\$73,160
416\$1,254\$244\$1,010\$72,151
417\$1,254\$240\$1,013\$71,137
418\$1,254\$237\$1,017\$70,120
419\$1,254\$234\$1,020\$69,100
420\$1,254\$230\$1,023\$68,077
Year 35\$15,046\$2,986\$12,060
421\$1,254\$227\$1,027\$67,050
422\$1,254\$224\$1,030\$66,020
423\$1,254\$220\$1,034\$64,986
424\$1,254\$217\$1,037\$63,949
425\$1,254\$213\$1,041\$62,908
426\$1,254\$210\$1,044\$61,864
427\$1,254\$206\$1,048\$60,816
428\$1,254\$203\$1,051\$59,765
429\$1,254\$199\$1,055\$58,711
430\$1,254\$196\$1,058\$57,653
431\$1,254\$192\$1,062\$56,591
432\$1,254\$189\$1,065\$55,526
Year 36\$15,046\$2,495\$12,551
433\$1,254\$185\$1,069\$54,457
434\$1,254\$182\$1,072\$53,385
435\$1,254\$178\$1,076\$52,309
436\$1,254\$174\$1,079\$51,229
437\$1,254\$171\$1,083\$50,146
438\$1,254\$167\$1,087\$49,060
439\$1,254\$164\$1,090\$47,969
440\$1,254\$160\$1,094\$46,875
441\$1,254\$156\$1,098\$45,778
442\$1,254\$153\$1,101\$44,677
443\$1,254\$149\$1,105\$43,572
444\$1,254\$145\$1,109\$42,463
Year 37\$15,046\$1,983\$13,063
445\$1,254\$142\$1,112\$41,351
446\$1,254\$138\$1,116\$40,235
447\$1,254\$134\$1,120\$39,115
448\$1,254\$130\$1,123\$37,992
449\$1,254\$127\$1,127\$36,865
450\$1,254\$123\$1,131\$35,734
451\$1,254\$119\$1,135\$34,599
452\$1,254\$115\$1,138\$33,460
453\$1,254\$112\$1,142\$32,318
454\$1,254\$108\$1,146\$31,172
455\$1,254\$104\$1,150\$30,022
456\$1,254\$100\$1,154\$28,868
Year 38\$15,046\$1,451\$13,595
457\$1,254\$96\$1,158\$27,711
458\$1,254\$92\$1,161\$26,549
459\$1,254\$88\$1,165\$25,384
460\$1,254\$85\$1,169\$24,215
461\$1,254\$81\$1,173\$23,042
462\$1,254\$77\$1,177\$21,865
463\$1,254\$73\$1,181\$20,684
464\$1,254\$69\$1,185\$19,499
465\$1,254\$65\$1,189\$18,310
466\$1,254\$61\$1,193\$17,117
467\$1,254\$57\$1,197\$15,920
468\$1,254\$53\$1,201\$14,720
Year 39\$15,046\$897\$14,149
469\$1,254\$49\$1,205\$13,515
470\$1,254\$45\$1,209\$12,306
471\$1,254\$41\$1,213\$11,093
472\$1,254\$37\$1,217\$9,877
473\$1,254\$33\$1,221\$8,656
474\$1,254\$29\$1,225\$7,431
475\$1,254\$25\$1,229\$6,202
476\$1,254\$21\$1,233\$4,969
477\$1,254\$17\$1,237\$3,731
478\$1,254\$12\$1,241\$2,490
479\$1,254\$8\$1,246\$1,244
480\$1,249\$4\$1,244\$0
Year 40\$15,041\$321\$14,720
Grand
Total
\$601,828\$301,828\$300,000

## Mortgage Calculator - Help

Amortization Schedule
The amortization schedule show you how monthly principal and interest payment and principal balances change over the life of your loan.
Interest
The portion of your mortgage payment that is due to the interest rate being applied to the principal balance. The Total Interest for a mortgage is the sum of all interest paid over the life of a loan.
Interest Rate
The percentage of the principal balance of your mortgage that determines how much interest you must pay. The interest rate on your mortgage may change or remain the same depending on the type of loan you have.
Loan Amount
The initial principal balance or your mortgage at closing.
Principal
The portion of your mortgage payment that is used to pay down the current balance of your mortgage. The principal balance represents how much you owe on the mortgage.
Term
The amortization term is one of the key factors that determine your required mortgage payment. Your required mortgage payment for fully amortizing mortgages is the amount that would result in the mortgage being closest to being paid off by the end of the amortization term. Longer amortization terms result in lower required mortgage payments for fully amortizating mortgages, all other things being equal.