How to Amortize Your Mortgage

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AMORTIZE MORTGAGES
Amortizing mortgages, Calculating monthly payments
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HOW TO AMORTIZE YOUR MORTGAGE
Learn About What is Amortizing? Basic Concepts
of Amortizing Process of Amortizing your Mortgage
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WHAT IS AMORTIZATION
To amortize means to pay regular monthly payments
to the lender against a fixed mortgage term.
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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.
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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.
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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.
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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.
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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

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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