How to read the mortgage balance chart

The chart is the remaining loan balance after each payment. It is not the housing total and it is not your equity.

One line, the loan

Each point is the balance after that month’s principal is applied. The line starts at the amount borrowed and ends at zero if the schedule completes.

Tax, insurance, PMI, and HOA never appear on the chart. They leave your account and do not change the curve.

The curve is slow, then steeper

Early payments remove little principal, so the line looks almost flat at the start of a long loan. Later payments remove more principal, and the line falls faster. That shape is amortization, not a display error.

A larger down payment starts the line lower. A shorter term makes it reach zero in fewer months. The rate changes how much of each payment is principal, so it changes the bend.

Equity is a different number

Equity would be a value of the house minus this balance. The calculator does not pick a future value, so it does not draw equity. The chart is only what you still owe the lender.

PMI uses this same balance against the original price. When the line crosses 80% of that price, you have reached the ask date.

This explains how WiseCalculator treats the numbers you type. It is not a lender’s offer and it is not advice for your loan.