You understand this about payments, right?
Your payment is part interest & part principle.
The principle part doesn’t really cost you money. If the principle part is $1000, then your checking account goes down $1000, but your equity in your home goes up $1000.
It is only he interest part of the payment that costs you money. It is an expense. Principle repayment isn’t an expense.
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In response to this post by Late 80s Hokie)
Posted: 03/06/2020 at 12:49AM