Episode Details

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. This episode covers content for the National Real Estate Exam. In this episode you will learn: • Amortization is the systematic liquidation of debt through regular installments of principal and interest. • In the early stages of a loan, the majority of the monthly payment is allocated to interest rather than principal. • A fully amortized loan results in a zero balance at the end of the term with no large final payment required. • Calculating principal reduction requires finding the monthly interest first by dividing the annual interest by twelve. • Partially amortized loans require a balloon payment because the regular payments do not cover the full principal balance. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep