An Overview of Amortization: It Plays A Role In Monthly Mortgage Payments
Even though this may sound like a fancy word, amortization is simply a long word for a straightforward topic. Furthermore, it plays a significant role in the determination of monthly mortgage payments. Before taking out a home loan, homeowners need to understand how their payment schedule works and what this means for the future of the home loan. Amortization refers to the way monthly payments are calculated to make sure that homeowners pay the same amount every month throughout the life of the loan. Even if homeowners do not stay in the house for the life of the loan, amortization will still play a significant role in the amount of money…