What is Interest?
Interest is the cost of borrowing money, expressed as a percentage of the loan amount. It is paid over time as part of the mortgage payment.
How Interest Works
Interest is calculated based on the loan’s outstanding balance. Over the life of the loan, payments gradually shift from covering mostly interest to mostly principal.
Benefits of Understanding Interest
Borrowers who understand interest can make smarter loan choices. This knowledge helps them compare loan offers and save money over time.
Capstone for Mortgage Education and Mortgage Training Classes
Capstone Institute trains students to explain interest rates and loan structures with clarity. Our mortgage training classes provide practical tools for guiding borrowers.