Principal Payment: Principal is the portion of your monthly mortgage payment that goes towards paying off your loan. Depending on your interest rate, only a small portion of your monthly mortgage payment goes towards your principal each month when you first buy your home.

However, as your principal payments slowly reduce your loan balance, more of your monthly payment begins to go towards principal to help pay off your loan completely.

Want to see how fast you will pay off your home loan? Use this free calculator to figure out what your remaining principal balance & home equity will be after paying on your loan for a specific number of months or years.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice.

We cannot and do not guarantee their applicability or accuracy in regard to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.