In a mortgage loan, the year is broken down into 12 monthly periods, and for each month you only owe interest on the remaining balance at that point in time. This amount of interest is deducted from your fixed monthly payment and the remaining portion of the payment is applied toward lowering the principal amount you owe. It is a fair loan from the consumer's point of view and has been used for home mortgage loans for many years. It is also now used for many automobile loans.
Enter the loan's principal amount, the interest rate, and the term of the loan in years, then press the submit button.
You should then be presented with a page displaying your fixed monthly payment accompanied with a listing for each month showing what portion of the payment is principal and what portion is interest.
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