How Amortized Mortgage Loans Work

Mortgage loans are good because they provide us the opportunity to purchase a home before we have all of the cash saved up, but do you know how amortized mortgages loans really work?  They definitely come at a price and you should try to pay it off before the loan term (easy for me to say, right?).

Most mortgage loans are amortized loans, which means each month your payment goes towards the interest and the principal until it’s all paid off. While I was researching the ins and outs of amortized loans, I found this interesting little tidbit from about.com:

This is referred to as ‘amortizing’ a debt, a term that takes it’s roots from the French term ‘ amortir’, which is the act of providing death to something.

I like amortized loans even less after learning the root word’s meaning! As long as I put death to it before the other way around…

How is your amortized mortgage payment calculated?

The payment is calculated in an amortized loan by adding the total loan amount (principal) to the total interest that will be paid over the life of the loan and then dividing by the total months (30 years x 12 = 360 months). Let’s use the following example: $150,000 mortgage loan, 5% interest, 30 year term.

Are You a Loaner?

Ever since our school days when we were taught to stand in line, we’ve become accustomed to getting ranked.  Well, now it’s time for your “loaner” ranking – not personality wise of course – but your appetite for debt! The loaner ranking is a snapshot in time and can change for the better or worse. …

Route 66 Road Trip Report

This post will be mostly pictures because it is too hard to even attempt to detail out our whole Route 66 road trip. In the end, we touched 8 states over 8 days and drove a total of 2,300 miles! Here’s a map to show our approximate trip:
 

We didn’t start in Chicago where Route 66 starts, but instead started in Oklahoma – my home state. We stayed that night in Oklahoma City and left early in morning with the final destination of Albuquerque, NM.  Even on the highway it was a 10 hour drive, so factor in Route 66 back roads and stop, and we were sure to have a late night.

Our first stop was at the Indian Trading Post in Calumet, OK right off Route 66. Very cool place for souvenirs, and I also wrestled a buffalo there.