Freelance writer

Micah Murray

Principal: This is part of your payment that goes straight toward your loan balance. Due to how loans are amortized, you usually pay less toward your principal at the beginning of your loan life and more at the end of it.
Interest: Interest is what you pay the lender for borrowing the funds, and you’ll pay more toward this cost at the start of your loan than at the end of it. Your interest rate will determine how much you’ll pay here.
Escrow costs: Escrow accounts are often used to store funds for future home insurance premiums, property taxes, and mortgage insurance. Your loan servicer manages the account and pays the bills when they’re due.

6+ years of experience in personal finance.
Work has appeared in Newsweek Vault, New York Post, Bankrate, RateGenius, Sound Dollar, Money Under 30.

Bio and experience

Micah Murray is a writer and editor with over six years of experience in personal finance, specializing in auto and personal loans, home equity loans, mortgages, and credit cards.

He worked as an editorial assistant at Money Under 30 for over two years and is currently a freelance writer at Newsweek Vault, the New York Post, and Bankrate.