Understanding Mortgages and Home Equity
Learn more about the financial concepts behind mortgages and home equity before purchasing a property.
Publisher: Khan AcademyDescription
Acquiring a property through a mortgage from the bank entails a lot of considerations, so understanding the relevant calculations at hand can be a big help. This course will first introduce you to the concepts of assets, liabilities, equity, and collateral in relation to obtaining a mortgage from various financial institutions. It will then teach you how to make a balance sheet and compute your equity depending on the market value of your property.
If you decide to sell your property or are incapable of continuing to pay your mortgage loan from the bank for whatever reason, you will then need to learn how to calculate the interests that come with your decision. This course will discuss how to calculate monthly interest rate repayments over the lifetime of a fixed rate mortgage using a geometric formula.
Owning a house is a major aspiration for a lot of people. In the vast majority of cases, fulfilling this dream requires taking out a mortgage, which is one of the biggest financial commitments most people make in their lives. This course will ensure that you learn the crucial financial concepts behind getting a mortgage before you dive in. These are really valuable pieces of knowledge, so don't wait until it's too late. Get started with your next learning journey, today.
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