Financial Security

If you are looking at the prospect of buying your first home, you may be experiencing different emotions from excitement to apprehension. It is understandable when you begin to consider how enormous an investment—and a risk—it is to buy a house.

Let’s take a look at the four major parts of the standard monthly payment.

• Principal

Your principal is amount of money you plan to borrow from the lending institution once a down payment has been made. It is the financing you have received, and ultimately what you will need to pay off to be finished with your loan.

• Interest
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