Amortization Schedule Mortgage

Amrtization schedule mortgageIf you own real estate, whether it be a home or a business premises you will need to mage your investment. For most of us to buy any kind of real estate will require taking out a mortgage loan.

A mortgage loan is one of the biggest debts we will ever take on, so it’s always a good idea to keep a track of things.  Paying off a mortgage can take up to 25 – 30 years of you life and taking up a large amount of your salary.

However it is possible to shorten the term by making additional payments, this will, over time chip away at the bulk of the debt. You can monitor your progress using amortization schedule to track payments, interest and balance of the remaining debt.

What is an Amortization Schedule Mortgage?

Not to be confused with a mortgage calculator, an amortization schedule an accounting record or a table/chart of the periodic progress of mortgage loan payments, showing the loan payments, dates, amount of principal, interest and the balance owing after each payment until the loan is paid off – the final term. At the beginning of the schedule, the periodic payment is the same amount with the majority of each payment being the interest. As the schedule progress’s, a large bulk of each loan payment will cover the principal. The last row of the schedule shows the borrower’s total principal and interest payments for the total mortgage term.

The amortization table shows the percentage of payments that goes toward interest which reduces with each payment and the percentage that goes toward principal increases. For example, the first few entries of an amortization schedule for a $200,000 with a interest rate of 12% over 30-year mortgage based on a fixed-rate amortization starting June, 2017

(using an amortization formula):

where

Amortization schedule mortgage

  • r = rate per payment period
  • i = nominal annual interest rate
  • n = number of compounding periods per year
  • p = number of payment periods per year

Five bucks here, five bucks there

borrow moneyWhen someone asks to borrow money or asks for you to cover the cost of something since they don’t have enough cash on them, are you ready and willing to hand over whatever they need? If you said yes, then you are a kind, generous person. While I do say yes, a million things run through my mind:Is this the first time? How often have they asked to borrow money? What is their financial status? Would they pay the amount back in a timely manner, regardless of the amount? Am I crazy? Maybe, but surely you must think it too. (Not the part about me being crazy. ;) You’re just not willing to admit it. But what if you have seen them on several occasions and they have forgotten? Are they trying to avoid the topic?

Here is what I wonder: Should I try to forget about it too, because it is only a small amount? But that’s whatever x amount of dollars that you lost. It’s the principle. The next time the situation of owing money comes up should it be brought up saying that you only have to pay “x” amount, because so and so owes you “x” amount? It’s no secret that talking about money can often be a sensitive and awkward issue.  Your relationship with that person can also play a factor and what their attitudes are towards money. For me, every dollar counts. For others, not so much.

I don’t have a photographic memory, but on several occasions, people have told me I have good memory. I can be pretty scatter brained sometimes with way too many things on the go, so I like to think I have selective good memory.  I remember the things that matter the most.  While I do forget things here and there, the one thing I rarely seem to forget is who owes me money and the amount they owe.  It actually really bugs me if people say they forgot or don’t even bother to bring it up when they clearly owe me money. While I say, “Oh don’t worry about it, it’s okay. Just pay me whenever you can.” It really irks me. It irks me if I have to remind them more than once. Okay, so for two dollars, maybe I’ll let it slide. But when it has been four months and you still owe me $20, shouldn’t I say something? Inquire about it at least? Lending small amounts of money is fine here and there, but I don’t think I could go any bigger than that. I only say this, because I’ve never been in the situation of having to lend large amount of money to friends and family.

I find it interesting when people forget about owing friends and family money. You never forget you owe the big bad bank money, because of interest and such, but how easy it is to forget you owe someone closer to you a few bucks. I somehow try to casually bring it up in conversation, hoping it will trigger their memory. They’ll say, ” Oh yeah! I forgot I owed you $10 bucks from the last time we went to the bar. Good thing you reminded me!”

Yes. Good thing. ;)

 

How do you approach the process of lending and owing money to friends and family?

 

Haggling To Get the Best Deal

“What do you think of when you first hear the word haggling? Do you imagine yourself at a flea market browsing the aisles for antiques? Or do you picture a garage sale with people looking through old boxes and milk crates full of odds and ends?

Most of my haggling has been done overseas while on vacation in a foreign country.

I absolutely love going to their local markets or even vendors on the side of the road and checking out their handicrafts. Locals know you’re a tourist and assume you have lots of money. In my experience, when I ask how much, I find they’ll often offer me a price which is pretty high (It helps to know the conversion rate to see if you’re being ripped off, as well as a bit of the language so you can ask how much and say things like too expensive).  And so begins the battle of bargaining, naming prices back and forth until either you’re satisfied or you walk away in search of a better bargain.”

Read more about my thoughts on haggling @ Suburban Finance.

 

 

Wasting Money On Lottery Tickets

I’ve never played the lottery on my own, yet always participate in the work lottery pool. I often feel like I’m throwing my money away every time I contribute, yet I don’t want to be left out if they win big. Find out more over at Suburban Finance.

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Who Doesn’t Have A Bank Account +$100 AMAZON VOUCHER GIVEAWAY!!

The following is a guest post by NatWest.

 

You probably have an image in your head. A rural wooden shack, a vegetable garden, some funny smells and conversation peppered with the names of Kropotkin, Bergman and Marx. These are the people who chose to live off the grid, away from regular civilisation and probably keep all their money under their mattress. How true this image is, is debatable, however you might be surprised to know that there are a lot more people than you might imagine who don’t go in for the whole bank account thing, whether by choice or not.

An article in Time magazine in November 2012 looked at this precise phenomenon and revealed that as much as one in nine American households don’t have current accounts. A lot of the time this isn’t strictly an ideological issue, it is more invidious than that – it’s a fiscal one. People with less money are less likely to open a bank account. In households with incomes of less than $15,000 a year, 28 per cent have no bank account.

Some of the reasons that Time gives for this occurrence include a lack of time to bank. With long working hours and even longer commutes some people never have a chance to see the inside of a bank, have a lack of trust in banks, and suffer a lack of financial literacy; as in some people don’t understand the costs involved in having a bank account.

In the UK the figures aren’t nearly as high; it currently stands at about 5 per cent for low-income families, down from between 20 – 25 per cent in the 1990s. Worldwide though, the figures are quite high. According to Businessweek 2.5 billion adults in the world – approximately half – don’t have a bank account. Again this appears to be predominantly a financial issue. Two-thirds of those polled said they simply didn’t have enough money to bank. In other cases it was because the banks were too far away or that it was too expensive to use them.

Surprisingly though there are some inroads being made in the way poorer nations use their money. Sixteen per cent of adults in Sub-Saharan Africa have used a mobile phone to pay bills or send money in the past year while two-thirds of adults in Kenya have received payments by phone.

If you suddenly decide not to put your money in the bank at some point in the future you might hit a few problems, some of which you might not have factored in. For instance, how would you go about paying bills? You could probably work something out with your landlord but what about electricity and heating? There aren’t too many companies who are going to except cash in hand.

Then there’s the salary issue. Unless you’re very lucky (or your business is a little unorthodox) then this will definitely cause some problems. Need the internet? You’ll probably need a bank account for that. Student loan? Same deal.

How about a credit score? It’s going to be pretty hard getting yourself a mortgage, credit card or loan without a credit history. Never having a bank account would give you the credit score of a homeless ghost (Nick Miller style).

Still even with all these issues there are some unusual characters out there who will, for reasons that are entirely their own, feel that stuffing their money under a mattress and cookie jars is better than putting it safely in a bank. To each their own.

 

Secondhand isn’t Second Class

First class, first place. When something is #1, it is considered to be the best.

With that being said, buying or owning secondhand clothing/items was almost never an option in my family. I grew up believing that  it had to be brand new in order to be the best.  Read more about it in Suburban Finance.

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3 Responses to Secondhand isn’t Second Class

  1. Many people feel that way but I have proudly always done the bulk of my clothing shopping at Goodwill and other thrift stores like it. I have even managed to find some collectibles over the years at Goodwill and sold them for a profit on ebay.
    zimmy recently posted…Freelance Writer? Earn Some Extra Money With DevtomeMy Profile

    • makinthebacon

      That’s pretty cool you were able to find some collectibles at Goldwill and sell them for a profit on eBay. I wonder if people who are getting rid of stuff realize that some of it may be worth something to someone on eBay.

      • Yep, they are. When you donate to Goodwill, the stuff gets sorted into three different categories. Website auction, in-store auction and floor sales. People donate high quality gold and silver jewelry as well as other collectibles so they can take the full value as a tax deduction. The really good stuff never makes it to any Goodwill store. It all goes to the website.

        It actually makes sense if you think about it. If they had gold and silver items worth several hundred dollars in the stores, they would have to have security guards, cameras, more expensive doors etc.

        http://www.shopgoodwill.com/
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Lifestyles of the Frugal, but Extremely Wealthy

Frugal Billionaire.  

Yes, these people actually exist. 

Those two words don’t always go together. It sounds more like an oxymoron to me.  Why? When you think of billionaires, you almost always think of yachts, private jets, mansions, etc. Everything is high-end and very expensive. Money is not an issue for them. Why would it be?

Find out who’s a frugal billionaire aside from Warren Buffett in today’s post @ Suburban Finance.

 

 

She Ain’t Nothin But a Gold Digga (AND she admits it)

Gold DiggerWe all have dreams, big or small.  We aspire to get to them. We work hard and sacrifice a lot  to achieve those dreams.

However, would you let someone else finance your dreams if it was possible?

The following is an excerpt from Erin Wotherspoon,  author of the blog: A Penniless Girl, Bad dates and Plenty of Oysters:  “I’ve got a pretty face and a pretty extensive urban spoon wish list. ..we all know that getting what you want in life can be though, which is why I’ve decided to let someone else finance my dreams”.

Now why didn’t I think of that? Lots of people have other people finance their dreams! There’s the television shows such as Dragon’s Den and Shark Tank where aspiring entrepreneurs pitch their ideas and business models to venture capitalists.  There’s also Kickstarter, which is considered the world’s largest funding platform for creative projects.  Unlike the television shows, Kickstarter isn’t involved with the project, it only funds it. It’s an all-or-nothing deal, but how cool would it be knowing that several hundred or thousand or hundred thousand people think your idea is awesome enough to invest it? On the other side, how cool is it knowing that you’re helping starting what could possibly be the next big thing?

Kickstarter is for everyone. Even big names such as Zach Braff  and  Spike Lee use it to fund their projects. Critics are quick to say that it takes away from the little guy, but Kickstarter claims it brings in more pledges for the artists. I’m going to have to agree with the critics on this one folks. These celebrities have money practically spilling out of their orifices, yet have the audacity to ask for MORE money.

For other people’s money.

People who make a mere fraction of what they make.

I’d rather fund the project of a starving, yet ambitious artist, than an artist who could afford to buy multiple restaurants in cash.

Sorry for side tracking, I tend to do that a lot in my writing  AND in my thoughts AND in my everyday life.

Back to Erin, the serial dater. She is an actress with champagne tastes when it comes to food, but a beer budget bank account. Her blog recounts her eating excursions in mainly fine dining establishments in Toronto (although the most recent episode is at the Mandarin) with guys who are willing to pick up the tab. I’m all for guys paying for the first date, but I’d feel bad if they paid for dinner every time. I’ve had a couple of boyfriends who did that.

Not going to lie. I miss that. ;)

This is a foodie’s dream and probably a nice guy’s nightmare. I’ve read a few of her entries on her blog (which is on Tumblr, which you have to sign up for to comment or follow her. I’m surprised with all the exposure she’s getting, she’s not on Twitter or has a free WordPress blog) and I can’t help but laugh.  I don’t have the balls to pull that kind of sh*t, but she does and I love her for that.  She’s getting free meals out of it! I feel bad for the  guys, but laugh at her entries.

Blunt. Honest. Funny. Love it. Her theme song  is probably, “I Don’t Care, I love it.”

People use other people to fulfill their desires. This is nothing new, but perhaps blogging about it is.