When you think of loans, often you are not thinking about what the amorization on your loan may be.  When you are selecting from various  mortgages for your home, you may want to look at the amorization, in other words, how much money your house is actually costing you after interest accrued over time.  This may affect your decisions about what sort of homeloan you want.

 

Obviously, the more money you put down on your home, the less amorization you will end up paying.  Also, the shorter your loan period is, the less charges you will accrue over time.  For example, if you have a 15 year fixed loan instead of a 30 year fixed loan, your monthly payment s may be higher but at least you will be paying less amortization in the long run.

 

If you are curious to know what your mortgage is really costing you, meaning what the true value is of your loan over time, it is a good idea to use an amorization calculator to calculate your type of loan with the interest rate that you lock your loan at.  You may be able to offset the cost of your home by making larger monthly payments over the minimum due.