Your mortgage loan can affect your retirement income
The Dow Jones industrials dropped more than 500 points over two days as traders in the stock market worried about subprime mortgage loans. The weakening of the housing market has resulted in lower real estate prices and has made it harder to make short-term profits buying and selling homes, apartments, and condominiums. As interest rates have gone up, interest-only loans, negative amortization loans, or variable-rate loans have increased the burden on borrowers who end up defaulting on the loans because they are unable to refinance or sell at a profit.
Many of the borrowers who are now struggling with their mortgage loans could have had a better outcome if they had read and understood the terms of their home mortgage contract. An educated borrower also needs to understand how compound interest and mortgage amortization are calculated. A mortgage amortization schedule provides a detailed description of the principal and interest in each monthly payment during the life of the loan.
When planning your retirement, you need to know when your home will be paid off and how much money you will have in your savings account. An annuity calculator will help you determine the accumulation of capital from a single deposit or from regular deposits. Did you know that you can become a millionaire by investing $180 Dollars per month at 14% interest for 30 years? That is only $45 Dollars per week! You can also save a lot of interest on your home mortgage by paying additional principal in each monthly payment.
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