Calculator Terms 

Amortization Table

A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.

Down Payment

The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

Interest

The fee charged for borrowing money.

Homeowner's Insurance

An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.

Principal

The part of the monthly payment that reduces the remaining balance of the mortgage.

Taxes & Insurance

These can be included in your mortgage payment and are paid into an escrow account each month for property taxes and mortgage and hazard insurance.