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How to Amortize Your Mortgage

This presentation from ForeclosureDataBank.com provides insights about amortizing mortgage. Learn about mortgage term, amortization schedule, pre-payments and extra payments etc.

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How to Amortize Your Mortgage

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  1. AMORTIZE MORTGAGES Amortizing mortgages, Calculating monthly payments http://www.ForeclosureDataBank.com

  2. http://www.ForeclosureDataBank.com HOW TO AMORTIZE YOUR MORTGAGE Learn About What is Amortizing? Basic Concepts of Amortizing Process of Amortizing your Mortgage

  3. http://www.ForeclosureDataBank.com WHAT IS AMORTIZATION To amortize means to pay regular monthly payments to the lender against a fixed mortgage term.

  4. http://www.ForeclosureDataBank.com CONCEPTS OF AMORTIZATION Monthly Payments/Mortgage Term Monthly payments include principal amount and interest that is to be paid every month for fixed mortgage term. Mortgage term means number of loan repayment years that starts from 5 years up to 30 years.

  5. http://www.ForeclosureDataBank.com CONCEPTS OF AMORTIZATION Amortization Schedule Amortization schedule depicts how each monthly installment is applied to balance of loan. It shows how much more principal or less interest & visa versa is divided in each installment.

  6. http://www.ForeclosureDataBank.com CONCEPTS OF AMORTIZATION Prepayments Prepayments is a concept that allows the borrower to pay a few payments in advance. This provides certain amount of security in case borrower happens to miss any monthly installment.

  7. http://www.ForeclosureDataBank.com CONCEPTS OF AMORTIZATION Extra Payments Extra payments allow the borrower to pay extra money or surplus money in addition to current monthly installments as per borrowers convenience. This helps reduce the principal amount sooner.

  8. http://www.ForeclosureDataBank.com PROCESS OF AMORTIZING MORTGAGE • Analyze your financial statement • Understand basic amortization concepts • Generate hypothetical monthly payments & schedule using online tools • Analyze if the schedule fits your budget • Check what suits you best, higher or lower amortization • Speak & discuss with expert real estate agent before applying for mortgage

  9. http://www.ForeclosureDataBank.com SUMMARY • Amortization is a process of paying monthly installments for a fixed period of mortgage term. • Understand fundamental concepts like amortization schedule, prepayments, extra payments, mortgage term etc. • Research & prepare a hypothetical monthly payment & schedule chart as per budget for better understanding of financial obligations • Get advise from a professional real estate agent

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