Understanding Your Mortgage: Finding The Principal Balance

If you're looking to find your ending mortgage principal, there are a few ways to go about it. Your mortgage principal is the original sum of money lent to you, and it's important to distinguish it from your mortgage interest, or the amount your lender charges you for lending you money. Your mortgage balance is the full amount you owe at any point during the duration of your mortgage. To find your ending mortgage principal, you can use a mortgage balance calculator, which will require you to enter your original mortgage principal, annual interest rate, term years, and monthly payment. You can also call your mortgage company to ask for your mortgage balance, or check their website by creating an online account. It's important to note that your mortgage balance will accelerate toward zero over time, with your payments in the early years being primarily interest, and payments in later years being mostly principal.

Use a mortgage calculator

Using a mortgage calculator is a straightforward way to determine your ending mortgage principal. This method is beneficial if you are looking to pay off your mortgage ahead of time. You can use a mortgage calculator to find out your remaining balance, as well as to estimate what you will owe in the future.

To use a mortgage calculator, you will need to input the original mortgage amount, also known as the principal. This is the amount of money you borrowed. You will also need to know the annual interest rate on your loan, which is how much the lender charges you for lending you the money. Interest rates are expressed as an annual percentage. The third piece of information you will need to enter is the loan term in years, which is the number of years it will take to pay off the mortgage. Most mortgages have 30-year terms.

Once you have entered these three pieces of information, the calculator will display the monthly payment. It will also show you the total interest you would pay over the life of the loan, as well as the total principal plus interest you would pay over the loan's term. You can fine-tune your payment by entering your annual property tax premium, annual home insurance premium, monthly homeowner association fee, and monthly cost of mortgage insurance.

Some calculators will also allow you to enter the number of months you have already paid on the loan, which can help you determine the principal payments you have made so far. This can be useful if you have made irregular or extra payments. You can also use a bi-weekly payment plan, which can help you pay down your mortgage principal faster. By using a mortgage calculator, you can easily determine your ending mortgage principal and make more informed financial decisions.

Call your mortgage company

Calling your mortgage company is a straightforward way to find out your ending mortgage principal. Here's what you need to know:

First, locate the contact information for your mortgage company. You can usually find their phone number on your mortgage statement or by searching for their website online. It's a good idea to have your account information handy when you call, such as your account number or online login details, as this may help speed up the process.

When you call, you will likely be connected to a customer service representative who can assist you with your query. Explain that you would like to know your ending mortgage principal, and they will guide you through the process. They may ask for some additional information to verify your identity and account details, so be prepared to provide personal information such as your full name, address, and date of birth.

It's important to note that your ending mortgage principal refers to the balance at the end of the year. This amount will differ from the principal balance at the beginning of your mortgage, as your monthly payments gradually decrease the principal over time. The customer service representative should be able to provide you with both the original principal amount and your current outstanding balance.

If you have any additional questions or concerns about your mortgage, this is also a good opportunity to ask. For example, you may want to inquire about any prepayment penalties associated with paying off your mortgage early, as some lenders do charge a fee for this.

By calling your mortgage company, you can quickly and easily obtain the information you need regarding your ending mortgage principal. This will help you better understand your financial position and make more informed decisions about your mortgage and overall financial situation.

Check your mortgage statement

Checking your mortgage statement is a straightforward way to find your ending mortgage principal. The principal is the original sum of money lent, and it is part of a typical loan repayment, which also includes interest. Your mortgage statement will include the unpaid principal balance, interest rate, and monthly payment values.

Your mortgage statement can be found by calling your mortgage company and requesting the information over the phone, or by going online and creating an online account with a login and password. This will allow you to view your mortgage statement at any time.

Your mortgage statement will also be useful if you want to pay off your mortgage early. You can use a mortgage payoff calculator to evaluate the different options for early repayment, including making one-time or periodic extra payments, biweekly repayments, or paying off the mortgage in full. The calculator will determine the remaining time to pay off the debt, the difference in payoff time, and interest savings for different payoff options.

If you are considering an interest-only mortgage, you can use an interest-only mortgage calculator to determine the amount you will pay monthly during the interest-only term. This type of mortgage requires you to pay only the interest charges for a fixed period, resulting in lower payments initially. However, once this period ends, your payments will increase to include principal and interest.

Check your online account

Checking your online account is a convenient way to find your ending mortgage principal. Most mortgage companies have websites that allow you to create an online account to view your mortgage details, including your balance. This usually involves creating a login and password. By logging into your online account, you can access information about your mortgage, such as the original mortgage principal, annual interest rate, term years, and monthly payment.

To create an online account, you will typically need to provide personal and financial information. This may include your name, address, contact information, and loan or account details. It is important to have this information readily available when signing up. Additionally, you may be required to create a secure password that meets specific criteria, such as including a combination of letters, numbers, and special characters.

Once you have created your online account, you can log in and navigate to the relevant section to view your mortgage details. This may be labelled as "Mortgage Overview" or "Loan Details". Here, you will find information about your ending mortgage principal, which refers to the remaining balance of your mortgage. It represents the original sum of money lent to you, excluding any interest or additional charges.

Your online account will provide you with up-to-date information about your mortgage, including the progress you have made in paying it off. It is important to regularly review your mortgage details and stay informed about any changes or updates. Additionally, online accounts often offer various features and tools to help you manage your mortgage effectively. For example, some websites may provide calculators or amortization schedules to help you understand the breakdown of your payments and how they are applied to the principal and interest over time.

By utilising the features available within your online account, you can stay informed about your ending mortgage principal and make more informed financial decisions. It is a convenient and accessible way to monitor your mortgage progress and ensure that you are on track with your payments. Remember to keep your login and password secure and contact your mortgage company if you have any questions or concerns about the information provided in your online account.

Make extra payments

Making extra payments on your mortgage can help you pay off your loan faster. Each mortgage payment reduces the principal you owe. By making additional payments towards the principal early on, you can bypass the added interest you'll pay in the future.

However, different lenders have different rules for extra payments. Some lenders will only accept extra payments on top of a regular payment. For example, if your regular payment is $1000 and you want to pay $500 extra, you'll need to make a payment of $1500. The regular portion of the payment will cover the interest accrued since the last payment, and some principal, and then all of the extra will go towards the principal.

Some lenders will allow you to make extra payments at any time, but you may need to specify that you want the extra payment to be applied to your principal. Some lenders will require instructions in writing, or for you to use the "principal only" avenue on their website. Some lenders will automatically apply extra payments towards interest or push the payment date ahead.

You should review your loan agreement or contact your bank to find out their specific process for making extra payments.

Frequently asked questions