Based off the loan amount of $250,000.00, interest rate of 5%, term of 30 years, and 60 months previously paid, you have a remaining balance of approximately $250,000.00. Of this amount, $60,095.07 is in interest and $20,428.17 is in principal applied. The amount of principal applied $20,428.17 also represents the amount of equity you have built up in the home (plus any down payments).

Toward the beginning of your loan, your monthly payments will primarily go toward paying your mortgage interest. Over time, you will pay less on interest with each monthly mortgage payment and will pay more toward principal. Since your interest rate is calculated based off your principal, lower principal results in lower interest applied to your loan.