A Wyoming buyer finances $270,000 at 6% for 30 years. The approximate monthly P&I payment is $1,619. In the first month, how much of the payment goes to principal?

Explanation

First month's interest = $270,000 x (6% / 12) = $270,000 x 0.005 = $1,350. Principal portion = Total payment - Interest = $1,619 - $1,350 = $269. Early mortgage payments are heavily weighted toward interest; the principal portion gradually increases over the loan term (amortization).