2,178,603
As an agent, it's not really a typical task. But, it is an important issue so I often did discuss it with clients, especially first time home buyers. I didn't explain it... I showed them through a variety of charts. It is eye opening.
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Jessica Chestnut
Eagle Mountain, UT
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Elise Rudarmel
Stansbury Park, UT
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Kasey & John Boles
Boise, ID
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Ron and Alexandra Seigel
Carpinteria, CA
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Mary Yonkers
Erie, PA
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Nina Hollander, Broker
Charlotte, NC
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Brian Burkhalter
Draper, UT
711,852
There are a lot of charts which explain amortization. But a loan officer is usually a better source.
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Elise Rudarmel
Stansbury Park, UT
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Kasey & John Boles
Boise, ID
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Ron and Alexandra Seigel
Carpinteria, CA
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Mary Yonkers
Erie, PA
1,712,676
That is usually handled by the lender.
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Kasey & John Boles
Boise, ID
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Ron and Alexandra Seigel
Carpinteria, CA
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Mary Yonkers
Erie, PA
5,104,931
I don't... I let the loan office explain it.
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Kasey & John Boles
Boise, ID
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Ron and Alexandra Seigel
Carpinteria, CA
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Mary Yonkers
Erie, PA
1,231,853
Come to my prelicense class, Chapter 12 explains amortization
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Kasey & John Boles
Boise, ID
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Ron and Alexandra Seigel
Carpinteria, CA
2,182,552
I SHOW them with my HP10B II
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Mary Yonkers
Erie, PA
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Michael J. Perry
Lancaster, PA
142,796
I let the lender handle that.
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Kasey & John Boles
Boise, ID
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Mary Yonkers
Erie, PA
1,725,996
Read Chapter 5, Financing
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Ron and Alexandra Seigel
Carpinteria, CA
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Mary Yonkers
Erie, PA
921,504
I show them.
Any bank website, (or calculater website) plug in the numbers, get the 25 year report.
"Now' I say, "Look what happens when you simply add the princple to each payment."
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Mary Yonkers
Erie, PA
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Brian Burkhalter
Draper, UT
1,045,440
This rarely has ever been asked of me but the simpliest way is to show an amortization chart and explain that as the principal drops each month the amount of interest paid decreases... show them an amortization CHART
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Rachel Dunn
Reesville, OH
2,220,654
I let the license mortgage broker explain...
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Anthony Acosta - ALLAT...
Atlanta, GA
1,502,998
#########That's what lenders are for###############
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Anthony Acosta - ALLAT...
Atlanta, GA
3,071,489
6,393,609
5,583,278
I don't....that's an explanation that should come from the mortgage broker.... other questions always follow....
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Kasey & John Boles
Boise, ID
5,216,409
A set payment for a period of time at a set rate where the principal is retired to zero. There are many variations but that is the simple explanation.
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Mary Yonkers
Erie, PA
7,836,164
544,014
The best and quickest way to explain it is with a graph. Go to google images and search for amortization table.
5,868,554
4,936,705
4,800,082
259,005
Very carefully if you have to. Just print out an explaination from the 'net and give it to them.
4,319,419
3,986,258
1,157,785
It depends on the context of "amortization" and the client's knowledge level on this topic.
321,564
I'm able to highlight the subject.. My lender can answer all these types of questions.
2,684,109
The "mort" part of the word is from Latin for deaden or kill. Amortize means literally, "to kill off the mortgage".
Having said that, I send my people to a Lender or an Attorney for explanations regarding mortgages, notes, and loans.
3,988,007
I show them a chart so they can see how every month there is a small principal reduction that increases over time. Most buyers don't really care.
3,345,091
809,258
I am not sure I have ever explained it, but I have been around when lenders and escrow officers have explained it. I leave it to them. -Kasey
86,514
Its pretty easy to do with a chart. Fun part is showing them the difference between a 30 year and fixed 15 year loans. Equity build up happens so much quicker with the 15 year loan but payments are about 25% per month. Some frugal, high income folks opt for the 15. Caveat I tell them--once you have the 15 year loan in place your payments can't alter except for MORE. I can't belive the rates on 7/1 arms--WOW!
1,466,207
Brian Burkhalter Easy develop an amortization schedule for a loan and show your client the results.
2,781,173
There was a time where agents had to explain it all. Today, lots is outsourced
5,772,575
Brian,
I would give them a basic understanding like Carol Williams suggested, and I would advise them to have their accountant, banker or other pro explain it. A