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.