We need a new standard for calculating home loans -- here's why

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Luxury Connect | Oct. 16-18 | Beverly Hills

Mortgage loans are a good thing. They provide us the opportunity to purchase and occupy a home before we have all the funds to do so. This opportunity does come at a price. The price is the amortized payment schedule, which means each month part of the payment goes toward both the principal balance and interest payment (cost of the loan) until the homeowner pays the loan in full.