Question about mortgage payments?

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My husband and I purchased our first home in January 2009. Our mortgage was for 113,897 @ 5.5%. We used the VA loan with zero down and no PMI. My question is… we paid 5 months of payments at 810 a month and our new balance is 113,394. Does that mean out of the 810 a month… 160 goes to escrow for house insurance and taxes, 100.60 goes to the actual mortgage payment and the remainder 549.40 goes to interest?

  1. Reply
    May 2, 2011 at 8:18 am

    sounds right.

  2. Reply
    May 2, 2011 at 8:58 am

    thats right, thats why everyone loses there houses cause the banks and goverment *ucks us over

  3. Reply
    May 2, 2011 at 9:18 am

    Your mortgage company can tell you the exact numbers, though that does sound right. Just give them a call.

  4. Reply
    May 2, 2011 at 10:14 am

    sounds about right as the first close to 15 years is when the interest is collected it is only the last 15 years that you make the biggest impact on the principal
    look at you r amortization schedule as it is part of your closed loan package

  5. Reply
    David Z
    May 2, 2011 at 11:09 am

    yes but each month a little less goes to interest and a little more goes to principal. Eventually the majority of payment will be applied to principal but not for about 25 years.

    Your first month interest was 113,897 x 5.5% / 12 = $ 522.

    I am guessing you can go on line at your lender’s website and see the actual transactions to see how each payment was applied.

  6. Reply
    My Teleprompter Told Me To Say:
    May 2, 2011 at 11:16 am

    Gotta love interest.

  7. Reply
    May 2, 2011 at 11:33 am

    that is correct. As your monthly balance decreases more and more of your payment will actually go towards the principal balance. I would contact my lender or loan service dept for an amortization schedule. this will tell you exactly where the money is going. You may even have one on hand if you have your loan documents. It is generally with the loan package and a copy should have been given to you. The amortization schedule is the best way to know where the money from your payments are being applied. At 5.5% interest the amount that goes towards the principal will only increase about .40 cents a month.

  8. Reply
    May 2, 2011 at 11:58 am

    Yes, very little actually goes to the principle. I’ve heard that you should pay an extra month mortgage to the principle, this will lessen the years you have to pay and will pay down your principle. I pay my extra payment at the end of the year in December. Just divide your mortgage by 12 and put whatever it comes up to into your savings every month until December. Anyway congrats on your new home! You two got a pretty good interest rate also. Advice I received from an elder is never, ever be late on your mortgage because financial companies never forget that you were late for years and years, it will show up somewhere that you were late on your mortgage when you least expect it. I am never late, no matter what, going on 7 years now. Good luck!

  9. Reply
    ben l
    May 2, 2011 at 12:01 pm

    you got it!

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