How does amortization help the man afford the house?
February 2, 2007 · Print This Article
Matilda C asked:
Usually when an American adult wants to buy a
house, he does not actually have all the money
to afford the house right away. How does
amortization help the man afford the house?
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Usually when an American adult wants to buy a
house, he does not actually have all the money
to afford the house right away. How does
amortization help the man afford the house?
Website content
Josh Dunaway has been a certfied Realtor in the suburban Chicagoland area for over 20 years. Aside from starting his own real estate company, he also owns a mortgage company as well.
The longer the loan term, the lower the monthly payment - given same interest rate. Without financing, most would never accumulate enough to actually buy a home. This can go too far though and a negative amortization could be used so that the home payment is more affordable, but you could actually end up owing more than when you started after making years of payments. if used right, it can be a good program though.