Home buyers are often confused by an array of unfamiliar terms used when it comes to  the buying and selling process. Even the greenest buyers, however, can save thousands of dollars in financing by mastering just four words:

    * Interest
    * Principal
    * Amortization
    * Equity

Interest, of course, is the cost of borrowing the money to buy the property. During the first years, the monthly payments are largely interest. A smaller portion of the payment is credited to the loan itself, or the principal. The process of reducing the principal is called amortization. As the loan is gradually paid off, the homeowner’s actual ownership – or equity – is increased.

You can learn more about the real estate process by visiting our website www.DesMoinesHomeSource.com