As noted earlier, $1,000 of your first payment strictly covers the interest cost, meaning the remaining $432.25 is paying down your outstanding loan balance or principal. The example above doesn't ...

Granite Point Mortgage's common equity is down 36% in 2024, but its preferred shares offer a 10% yield on cost. Learn more ...

The remaining $288 goes toward paying down principal. For month two, your outstanding principal balance is $240,000 minus $288, or $239,712. Multiply that by 5% and divide by 12, and you get a ...