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Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

As an agent, it's not really a typical task.  But, it is an important issue so I often did discuss it with clients, especially first time home buyers.  I didn't explain it... I showed them through a variety of charts.  It is eye opening.

May 31, 2017 07:52 AM
Rainmaker
600,801
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

There are a lot of charts which explain amortization.  But a loan officer is usually a better source.

May 31, 2017 09:02 AM
Rainmaker
1,708,235
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

That is usually handled by the lender.

May 31, 2017 07:58 AM
Rainmaker
4,434,139
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I don't... I let the loan office explain it.

May 31, 2017 07:57 AM
Rainmaker
1,231,605
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Come to my prelicense class, Chapter 12 explains amortization 

May 31, 2017 09:55 AM
Rainmaker
2,051,305
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I SHOW them with my HP10B II

May 31, 2017 09:48 AM
Rainmaker
142,746
Diana White-Pettis
Bennett Realty Solutions - Upper Marlboro, MD
GRI, CDPE, CNE, WHC Upper Marlboro Homes for Sale

I let the lender handle that.

May 31, 2017 08:29 AM
Rainmaker
1,667,426
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

Read Chapter 5, Financing

May 31, 2017 08:09 AM
Rainmaker
914,708
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

I show them.

Any bank website, (or calculater website) plug in the numbers, get the 25 year report.

"Now' I say, "Look what happens when you simply add the princple to each payment."

May 31, 2017 07:53 AM
Rainmaker
1,045,215
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

This rarely has ever been asked of me but the simpliest way is to show an amortization chart and explain that as the principal drops each month the amount of interest paid decreases... show them an amortization CHART

Jun 05, 2018 12:27 PM
Rainmaker
2,100,602
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

I let the license mortgage broker explain...

May 31, 2017 02:37 PM
Rainmaker
1,425,100
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

#########That's what lenders are for###############

May 31, 2017 01:59 PM
Rainmaker
3,070,784
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

I let their lender do that

May 31, 2017 11:14 AM
Ambassador
5,700,010
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

I have never had to do that.

May 31, 2017 10:38 AM
Rainmaker
5,579,354
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

I don't....that's an explanation that should come from the mortgage broker.... other questions always follow....

May 31, 2017 10:16 AM
Rainmaker
4,510,699
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

A set payment for a period of time at a set rate where the principal is retired to zero. There are many variations but that is the simple explanation.

May 31, 2017 07:56 AM
Rainmaker
6,967,463
Roy Kelley
Retired - Gaithersburg, MD

It is easy to explain monthly obligations.

May 31, 2017 07:52 AM
Rainmaker
536,432
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

The best and quickest way to explain it is with a graph. Go to google images and search for amortization table.

Nov 05, 2017 02:02 PM
Rainmaker
5,265,763
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I don't the lender does, it is their job.

Jun 02, 2017 11:05 AM
Rainmaker
4,279,558
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

That is my lender job.

 

Jun 01, 2017 06:12 PM
Rainmaker
4,799,701
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I don't.  I let the lender do this.

Jun 01, 2017 05:36 AM
Rainer
258,949
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Very carefully if you have to.  Just print out an explaination from the 'net and give it to them.

May 31, 2017 11:05 PM
Ambassador
4,316,065
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Brian Burkhalter - I give them my lender's number...lol!

May 31, 2017 09:24 PM
Rainmaker
3,986,000
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I don't...that is the lenders duty

May 31, 2017 07:42 PM
Rainmaker
1,157,535
FN LN
Toronto, ON

It depends on the context of "amortization" and the client's knowledge level on this topic.

May 31, 2017 07:06 PM
Rainer
319,929
Melissa Jackson
Century 21 Alliance Properties - Azle, TX
Helping You Make The Right Move

I'm able to highlight the subject.. My lender can answer all these types of questions. 

May 31, 2017 06:24 PM
Ambassador
2,604,853
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   The "mort" part of the word is from Latin for deaden or kill.  Amortize means literally, "to kill off the mortgage".

  Having said that, I send my people to a Lender or an Attorney for explanations regarding mortgages, notes, and loans.

May 31, 2017 03:35 PM
Ambassador
3,986,960
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I show them a chart so they can see how every month there is a small principal reduction that increases over time. Most buyers don't really care.

May 31, 2017 02:49 PM
Ambassador
3,145,821
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

# # - I do not.  I leave that to their lender to explain. 

May 31, 2017 12:09 PM
Rainmaker
808,903
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

I am not sure I have ever explained it, but I have been around when lenders and escrow officers have explained it.  I leave it to them. -Kasey

May 31, 2017 11:55 AM
Rainer
86,514
Mike Kelly,CRS,CIPS
The MJKelly Team - Santa Rosa, CA
"One of Sonoma County's Natural Resources"

Its pretty easy to do with a chart. Fun part is showing them the difference between a 30 year and fixed 15 year loans. Equity build up happens so much quicker with the 15 year loan but payments are about 25% per month. Some frugal, high income folks opt for the 15. Caveat I tell them--once you have the 15 year loan in place your payments can't alter except for MORE.  I can't belive the rates on 7/1 arms--WOW!

 

May 31, 2017 11:31 AM
Rainmaker
1,466,027
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Brian Burkhalter Easy develop an amortization schedule for a loan and show your client the results.

May 31, 2017 10:52 AM
Rainmaker
2,684,052
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

There was a time where agents had to explain it all. Today, lots is outsourced

May 31, 2017 10:33 AM
Rainmaker
5,767,421
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Brian,

I would give them a basic understanding like Carol Williams suggested, and I would advise them to have their accountant, banker or other pro explain it.  A

May 31, 2017 10:08 AM