Loans A primer
When a consumer obtains a home mortgage, the majority of the payments each month goes toward interest. Interest does not go towards equity; it is simply money paid to the bank. The percent allocated to interest decreases over the term of the home mortgage, but not significantly until the end of the term on the loan. Determining whether you should buy or rent a property depends on your own financial situation. Start by examining your income, expenses, overall budget and your plans for your financial future.