Are my computations correct?
My loan has a 3% interest rate and I've been paying for 2 years and 6 months now. I've computed the taxes and insurance and lender has pocketed $15k and applied $10k on my loan so far, is this a normal practice? by martina660 from Detroit, Michigan. Jan 5th 2023
John Burke (jburke)
#27 ranked lender in Texas - 321 contributions
Yes, it's normal.| John Burke | Senior Mortgage Banker | Lending in ALL 50 states | www.yourtexasmortgagelender.com|Stride Bank | jburke@stridebank.com | (877)228-9069 | NMLS# 787231 |
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Yes... Mortgage interest is front-end loaded, This means at the beginning of the loan, you pay mostly interest, and a little bit of principal. As the years go by, that starts to even out, and then towards the end of the loan, you are now paying a lot of principal, and just a little bit of interest. This is exactly why people should avoid the standard 30-yr fixed, and try to go with a shorter term, like a 15-yr or 20-year, to save themselves from paying all that interest. Last resort, make some extra principal payments as often as you can, this will also reduce the amount of interest you pay over the life of the loan, and of course pay the loan off faster. I lend for homes in MN, WI, IA, ND, and SD. Find me at JoeMetzler.com | Cambria Mortgage | NMLS 274132
Dave Skow (daveskow)
#15 ranked lender in Washington - 455 contributions
yes ...totally normal ...ask someone for a full amortization table for your loan terms and you will see how the paymens are made
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