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Mortgage Amortization Formula + Balloon Payment Proof

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First published at 06:39 UTC on September 20th, 2019.

#mortgage
#economics
#mathematics

Math Easy Solutions

MES

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In this video I go over an introduction to mortgages and the concept of amortization as well discuss a bit about our new online Mortgage Calculator where you can view at http://mc.mes.fm.

A mortgage is simply a loan given where the house or propert…

In this video I go over an introduction to mortgages and the concept of amortization as well discuss a bit about our new online Mortgage Calculator where you can view at http://mc.mes.fm.

A mortgage is simply a loan given where the house or property is used as collateral which simply mean that you lose your house if you can’t pay the lender back. The concept of amortization is a method of paying back the loan gradually while compounding interest. This concept benefits both the lender and the homeowner since the lender will receive interest payments and the homeowner can pay a bit of the loan back at a time.

I also go over the proof of the formula for a basic amortization method where the interest rate is fixed and the monthly payments are constant. I further extend the proof to include a final balloon payment which is a way to save on interest by paying a big chunk of the mortgage at the end.

If you are looking to buy or sell your home it is very important to have a good understanding of mortgages and thus this is a very important video to watch!

Download the notes in my video: http://1drv.ms/1e3rEXK

View Video Notes on Steemit: https://steemit.com/mortgage/@mes/mortgage-amortization-formula-balloon-payment-proof

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