Mortgage Amortization Schedule

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Keep in mind, more amount you take more interest you pay.
Years
Longer periods drop the monthly payments but increases the total money wasted. Most of the time longer term contracts applies higher interest rates.
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Most of the times before applying to loan you cant learn the exact rate. Please check the bank's web sites.
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Be careful with the loan offers. Fees might seem small comparing the total amount you borrow but adds up quickly.

What Is Mortgage Amortization

Amortization is basically an accounting technique for periodically lowering the book value of the loan. To make it clear we need to understand that our monthly payments have 2 parts: interest part cost of the loan, principle the main part. These are calculated monthly with the same interest rate we use, but keep that in mind every month we have less debt as we paid some already. So when you do these calculations monthly and write them down a table of payments, we call it amortization schedule.

Tips For Mortgage

First of all check the rates you can apply. Also you should check the down payment requirements, for example FHA loans can be as low as 3.5% down payment. If it says 20% down payment, this means you need to have at least 20% of the loan you are applying. You can check our Down Payment Calculator for more detailed down payment scenarios.

On the other hand please be aware of the terms in the name of risk management. Mortgage loans have very high loan terms, this means you are committing to pay the amount calculated for lets say 20 years. Imagine your self 4 years later, 10 years later, 15, 20... Are you expected to work in these years? Do you have other incomes or any savings that at least save you for couple of months. Also another thing is the rental value of the property, if you will rent the property out what is the expected rent price and what percentage it is covering your mortgage payments.

For more detailed explanation, technical terms and usages you can check article about amortization

Amortization With A Calculator

Here you can find these calculations done with a normal financial calculator.