Adrian, MI (PressExposure) August 13, 2009 -- Many new home buyers are shocked to see how much of their monthly mortgage payment is applied to interest. Mark Goedert of Goedert Real Estate spoke at a recent workshop to explain how interest is calculated and to offer equity building tips to new homeowners.
Mark demonstrated how the amortization schedule works. Referring to a diagram on the wall, Mark said, âAs you can see the largest part of your mortgage payment is interest during the earlier years of your loan. As you reduce the principal balance, the amount applied to interest is reduced and more of your payment goes to the principal. Reducing the principal balance is known as building equity.â Mark explains more about mortgage programs for new homebuyers at http://first-timehomebuyerprogram.blogspot.com/
Mark explained how homebuyers finance with shorter term loans, making larger monthly payments, to reduce the principal balance quicker. âSome people cannot qualify for a mortgage that requires the larger monthly payment, but most loans allow you the option of paying more toward the principal. Therefore, you can finance your home with a long-term, low-payment mortgage and pay additional principal whenever you can. The best time to make extra principal payments is as early as possible when the interest amount is higher.â
Mark Goedert of Goedert Real Estate specializes in working with first-time homebuyers. He assists his clients in choosing the right home and the financing that works best for them. Home buyers who work with a Goedert agent are well prepared to make great decisions based on advice from an experienced real estate professional. Visit [http://www.under100000realestate.com/] to learn more.
Mark Goedert 1324 N. Main Adrian, MI 49221 517-403-1603 firstname.lastname@example.org
This press release was submitted by Right Now Marketing Group, LLC