Megan Johnson Math 1050 Walker p.1 Reflection This project completely changed my thinking on buying houses. I knew that they could be expensive, but I didn’t think that you could possibly pay double for your home because of interest, I learned that if you make a bigger down payment for your house in the beginning, you ‘won't have to borrow as much money from the bank to start out with. It’s a good idea to save up as much money as you can in the first place to help save money. I learned that shorter mortgages generally have lower interest rates. This means that you will be paying less interest on your mortgage because it is for a shorter period of time, and there isn’t as much interest to be paid. ‘You always pay for interest before paying off the principal amount you owe. I learned that in the start of your mortgage payments, a majority of your money goes towards paying off the interest, but in the end a majority goes towards the principal amount. It is important to make sure that you can afford the house you are buying. You want to make sure that you can afford the monthly payment while still having money for other necessary things you may need. You want to make sure that your salary is big enough to support your lifestyle. Real estate has a big impact on when you should buy and sell houses. You want to make sure that the market is good so you don’t end up getting a bad deal. If you sell your house in a good market, you could potentially make money off of your house. If you have a shorter mortgage period your monthly payments are higher, but you don’t have to pay as much in interest. It is also a good idea to pay a little extra each month, Even a little amount can drastically decrease the amount of interest you have to pay because all of that extra money goes towards the principal. The three most important factors in a mortgage are the principal, time period, and the interest rate. wag