When making your mortgage payment every month you are paying compound interest. This means every payment goes toward your unpaid interest and principal balance. Simple interest is where you are paying on just your principal balance. A simple interest loan you can see you can pay off much faster because you are not paying interest on top of interest like a compound interest loan. I get this question alot and most people dont know the difference, hope this helps some of you.
This entry hasn't been re-blogged:
Re-Blogged By Re-Blogged At
- Topic: Mortgage / Finance
- Realtors Needing the services of the Lending Powers
- 1st Time Buyers
- Mortgage Bankers
- Responsible Mortgage Lenders
Generate More Leads from this Listing
With a Trulia Pro Account
Find what you need?
See More Blog PostsAbout Real Estate! SEE MORE NOW!