Today's Topic: Mortgages and how APR% works. What is a mortgage?
How does a mortgage work?
Mortgage explained in basic terms.
Let me define some basic terms;
Principal, Interest, Term, APR% vs APY%, Final payoff ammount, and loan default.
Starting with the basics, let me explain simple interest and the math behind it.
Most consumer loans for cars, houses, and credit cards use APR% for interest calculation.
Here I will show you how to calculate the interest on a monthly or per payment basis.
Here is an example of a loan for a house being sold at $200,000, the payment schedule and breakdown of the distribution between the principal and interest.
Why is a no down payment a bad idea? Pros of down payment for the lender and the borrower.
Loan default, foreclosure, and repossesion explained.
Let me explain the different types of mortgage loans:
Fixed rate mortgages, Variable rate mortgage or adjustable rate mortgage, Balloon mortgage, Interest only mortgage, Combintion mortgage, PMI or private mortgage insurance, government backed loans, government assistance programs, and second mortgage or equity loan.
Let me share my opinion on which i believe to be the best between all these options.
Difference between the 15 year and 30 year term.
What could you have if you invested the difference.
Inflation explained through examples.
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Zillow Mortgage calculator
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