A comparison of interest only versus amortized loans.
- Alright, in this lecture,…we're going to talk about the difference…between interest only versus fully amortized loans.…But before we get there,…let's revisit the components of a loan first.…What do they have all in common?…Well one is there's always a principal amount,…or the amount that you're borrowing.…So regardless of whether it's interest only or amortized,…your loan has a loan amount.…How much did you borrow for your purposes?…Second, there's always going to be…an interest rate associated with a loan.…
So that is the cost of borrowing.…That's how much it's going to cost you to borrow that amount…from, say, a bank or a lender.…Third is there's always going to be a loan term…or the length of the loan.…Now, the length of the loan means different thing,…whether it's interest only or fully amortized.…We're going to see the difference there.…So all loans have these three things.…Now some loans are amortized and some aren't,…and now let's explore what the difference means.…First let's look at interest only loans.…
Note: This course uses data and example properties from the United States, but the concepts taught and tools provided are just as useful for any market.
- Determining if real estate investment is right for you
- Choosing a market and a property
- Using financing
- Strategies for first-time investors
- Real estate market cycles
- Valuing a property
- Analyzing your market
- How leverage impacts investments
- Real estate investment case studies
Skill Level Appropriate for all
Excel: Analyzing and Visualizing Cash Flowswith Curt Frye1h 16m Intermediate
Learning Real Estate Photographywith Scott Hargis3h 21m Beginner
Managing Your Personal Investmentswith Jane Barratt1h 31m Appropriate for all
Start here3m 29s
1. Case Study: Joe's First Investment
2. The Many Ways to Invest in Real Estate
3. Real Estate Market Cycles
4. How to Value a Property
5. Understanding Your Market
6. What Makes a Good Investment?
7. Understanding Leverage
8. Case Study: Rental Income Property Analysis
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