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America as a Negative Amortization Nation Grossman Financial Form

America as a Negative Amortization Nation Grossman Financial Form

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okay guys right before i go into my office i want to say this in my last video i spoke to you guys about mortgages and how their loans in which you pay a fixed monthly payment over the course of 30 years that is if you don't sell beforehand but now how the mortgage payment is actually calculated is it's determined through a calculation called amortization right amortization is a mathematical equation that does vary from institutional institution whereas part of your mortgage payment goes toward the principle of the loan balance and the other part goes to pay off the interest of the loan so that's the bank's piece or what we call the cost of doing business so in the beginning the majority of the payment goes toward paying the interest and gradually it adjusts where by the end of the loan most of that money goes toward your actual principal to the home is paid off and this process ladies and gentlemen is called amortization

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