Loans - Mortgages

Amortization Table

Just like Credit cards

MonthBeginning Balance Payment Interest Principal End Balance

Month

Zero to however many months it will take you to pay off the loan

Ending Balance Cost of house / condo minus what you “put

down” For example: If the place costs $100,000 and

you put 20% down that means you paid $20,000 cash and didn’t need to borrow that portion from the bank. The total you need to borrow then is 100,000-20,000 or $80,000. This is your ending balance in month zero.

Payment

30 year fixed – the interest rate stays the same for the entire duration of the 30 year loan.

15 year fixed - the interest rate stays the same for the entire duration of the 15 year loan.

5/1 arm – “arm” stands for adjustable rate mortgage, which in this case means that after 5 years the interest rate changes every year (every 1 year)

Interest, Principal, and Ending Balance work the same as with credit cards