An enormous chunk of your mortgage can be composed of the interest you’re paying on the loan, so people are naturally interested in the interest. The mortgage can be roughly broken down into two components. The first is the principle; the principle is the amount of the loan. For example, if the loan is for $100,000, that one hundred grand is the principle—the actual amount. But you have to take the loan out at a certain interest rate, and for a certain amount of time. So if you take out that $100,000 loan for a 30-year mortgage at an interest rate of five percent, by the time you pay off the mortgage, you have spent $150,000 dollars in interest. That information doesn’t come up front, which is why you need to use an interest only calculator to figure out what you’ll be paying on a mortgage.

Paying Is Principle

When a mortgage is created, it’s “stacked” so that at the beginning of the life of the mortgage, most of the money you pay goes to the interest generated by the duration of the mortgage. Though the method is essentially invisible to the buyer, the fact is that a buyer is mostly paying off the interest generated by the loan. As the years go on, more and more of the principle is paid off. An interest only calculator is an invaluable tool to the consumer in determining whether they should get a loan, and how to most effectively purchase a mortgage. Interest only calculators can be found online, and can be used for free, usually as a component in the website of a mortgage company or a bank. Interest only calculators will help you determine if you want to get into an adjustable or fixed-rate mortgage, and it’s always best to know what you’re getting into before signing with a mortgage.

We have been experiencing difficulties in finances for a time now. It must be the fact that we have more mouth to feed now, imagine two helpers and 4 kids. On toiletries alone, we are spending 4 times we used to. There’s baby shampoo, baby soap, cologne, powder etc. Sometimes it was really tempting to take out a loan but I know it won’t really solve our financial crises.

Other than that, I am not very familiar with loans and terms used in loans. Actually I am more familiar with real estate terms like reverse mortgage. This is a loan that is given to senior citizens. Or a kind of loan in real estate that is available to senior citizen. It works in a way that instead of paying a monthly amortization, the owner of the property is given a monthly payment or a bulk payment. The minimum requirement to avail this is that the borrower must be 62 years old at least.

Seniors citizen count on (Home Equity Conversion Mortgages) hecm counselor to help them use their home equity for income supplement. To become an hecm counselor, a person need to complete several requirements. They need to complete the HUD approved training program. they can opt for the classroom training or download the training materials. They should pass the HECM Counseling exam with a passing score of 80 out of 100 points. Another requirement is to apply to reverse mortgage company that are approved by HUD. But if you fail to pass the score of 80 out of 100, you can still retake the exam. But you must remember that you need to pay a non refundable fee every time you take the exam.

Another real estate term that I am familiar is reverse loan calculator. This a system for reverse mortgage that is designed by the Federal Housing Administration. This system determines if a senior is eligible for a reverse mortgage loan or not. This system are based on age of the senior and the value of the property owned by the senior.

But wait, before you start thinking I am your reverse mortgage expert, I am not. I just love reading stuffs about mortgage and real estate articles. As you know, we are still renting so any news about real estate is very interesting to me. I mean, you’ll never know, I might stumble upon a great site that will teach me how to have a house of our own.