Mortgage Plain-talk: What’s the Difference Between “amortization” and “term”?There are many stresses associated with home buying – both financial and emotional. And frankly speaking, it doesn’t help that the process comes with its very own foreign language. While your mortgage broker can help de-mystify these terms, it helps to have a bit of a primer on what some of these terms mean. After all, it’s your money and your home we’re talking about; as a Mortgagor, you have a right to understand what you’re reading. (You didn’t know you were a mortgagor? Read on…)
We’ll start with Amortization” and “Term”. Both refer to periods of time in the life of your mortgage, and you’ll want to be su
Mortgage Plain-talk: What’s the Difference Between “amortization” and “term”?
Posted in Finance by businessgod 644 days agoMortgage Amortization
Posted in Finance by businessgod 1072 days ago
When a person initially begins making payments on a home loan, the first years reduce the amount of interest owed much faster than the amount of the principal loan amount. By using mortgage amortization, it is easy to determine how the first few years of making monthly payments shows little advance in reducing the amount of the principal while the amount paid for interest continues to rise.For example, on a home mortgage of $180,000 mortgage amortization shows that during the first year of making payments of about $1,200 a month, the amount coming off the principal will be just under $900 whi
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