What is my mortgage principal? What does it mean to pay it down?

Your mortgage principal refers to the outstanding balance of your mortgage. This excludes the interest owed for borrowing and is the original amount borrowed from a lender that needs to be paid back.

As a homeowner, you can earn equity in your home by paying off your mortgage and by your home increasing in value. In terms of Landed's down payment program, we only share in the appreciation of the home value. We do not share in the equity you earn by paying off your mortgage. However, some of our customers may decide to exit their partnership with Landed by paying us back with the equity they have earned in their home.

 

If you have any questions, you're invited to reach out to us at customer@landed.com. You may also want to check out our online homebuying education resources.