How Do Mortgages Amortize?

Situation.....You're getting ready to take out your first mortgage and you can't wait to start building equity in your home every month by knocking down your principal balance. You've heard your friends and family tell you for years about how renting is "for the birds". "You're just making your landlord rich" they crow. You've got your plan...You'll just makeyour $1000 a month mortgage payment and a big chunk will go towards paying down your principal and what's left will go towards interest. After all, mortgage rates are near all-time lows. Wrong, wrong, wrong. We recently wrote an article on understanding mortgage amortization on ForTheBestRate.com. It's part of out series on mortgage and home buyer education. Check it out!

Other helpful posts and resources:
Using Seller Paid Closing Costs to Buy a Home
Interest Rate Comparison Shopping
What to do if You're Having Trouble Paying Your Mortgage
Mortgage Costs - What Fees to Expect