Payment = ((rate*principal))/(1-(1+rate)^-n) For Example: If you purchase a house for $200000 and you pay $100000 from your pocket. Rest of the amount $100000 you take a loan from a bank with a fixed interest rate of 5 % for 10 years. The interest is compounded annually and you will have to make monthly payments. The amortization schedule is as below:
Mortgage broker
Mortgage brokers are loan orgination specialists who bring borrowers and lenders together. Brokers establish ongoing relationship with many different lenders. They must keep up to date on all loan programs available in the market. They use tehir knowledge to help homebuyers choose the program that fits their needs. Brokers range in size from one person companies, to large firms with employees.
Brokers can get premiums from lenders depending on the interest rate given to the borrower. Higher rate, the higher the premium. Brokers also usually charge the borrowers an origination fee for brokering the loan.
