Help!! I don’t get my Mortgage!!!!!?

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The loan was 103,000 in 2003 our new payment is 939 a month, way too expensive, but the thing I don’t get is our principal payment is 591.79 a month. That’s 7101.48 a year that’s suppose to go to my mortgage payment and 4173.24 for taxes. How come my mortgage loan balance is 95,646.39??? I feel like none of the money I spend to citimortgage is actually going to my house payment? Help!!!

  1. Reply
    Wes G
    May 1, 2011 at 11:56 pm

    A lot of your monthly payment goes toward your interest. You also might have mortgage insurance of $ 70-100 per month if you got 100% financing. You can write a separate check every month and put “principle” on the memo line, to start paying your principle loan amount down. I hope this helps.

  2. Reply
    Lisa A
    May 2, 2011 at 12:52 am

    You completely left out interest. $ 591.71 is not your principle payment. It is your P&I, or principle and interest payment.

    Very little of your payment goes to your principle balance in the early years of a 30 year mortgage. Most of it goes to interest.

    The amount going to interest gradually goes down, bit by bit, and the amount going to principle gradually goes up as the years go by. After 30 years, nearly all of your payment will go to principle.

  3. Reply
    May 2, 2011 at 1:25 am

    Refinance and get a fixed rate loan.

    You are probably not accounting for escrow for insurance and taxes. I strongly doubt the principle is that high.

  4. Reply
    bob shark
    May 2, 2011 at 1:44 am

    First of all, do you have an interest only mortgage??? that might be the reason you are not paying of the principal.

    But even if you do not have an ARM, the payment of principal is extremely small at the beginning of a mortgage.
    The interest is the biggest part of the payment in the beginning

  5. Reply
    May 2, 2011 at 2:35 am

    cuz ur paying interest only so your actual principal isnt getting paid off only interest is. U might wanna rethink ur loan good luck

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