In this video we demonstrate calculations and keystrokes for mortgage amortization schedules. We cover how to calculate monthly payments, annual interest payments and how much principal is reduced on an annual basis.
Understanding these concepts and calculations is important not only for your success on the national CFP® Exam, but also for regular application in practice. Understanding your clients’ current mortgage and analyzing refinancing and new purchase opportunities is one of the more frequent tasks the financial planner is asked to complete. As the purchase of a home is typically one of the most significant financial decisions, it is imperative to master the steps necessary to assist your clients through this process.
Find more helpful videos on The Boston Institute of Finance's YouTube page.