A mortgage payment consists of several components: the mortgage principal and interest, and mortgage life insurance.
What is mortgage principal?
The mortgage principal is the capital amount of the original mortgage, fewer payments made towards it, aside from interest, calculated on the remaining principal balance.
What is mortgage interest?
Mortgage interest costs are normally front-loaded, structured so that interest comprises the largest percentage of your mortgage payment at the beginning of payments cycle of the mortgage and lessens as you near the end of the payments.
What is mortgage life insurance?
Mortgage life insurance premiums are added to your mortgage payment (in most cases) ensuring that if you pass away, and your claim is approved, the outstanding principal balance of your mortgage is reduced or paid off.
Alternatively you could look at personally owned life insurance where you may have more control in the future.
Please give me a call or connect via this website to arrange a meeting to discuss any mortgage questions that you may have.