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Video instructions and help with filling out and completing Where Form 4797 Amortization

Instructions and Help about Where Form 4797 Amortization

Kris Krohn and we're back today with Limitless Wealth TV. We're doing some advanced vocabulary. Some of you have been asking questions about amortization and depression, I mean depreciation. That can be a little depressing. One of those two terms, you're gonna have to figure out which one. We're gonna all break it down for you and help you understand what amortization and depreciation really mean. Alright, so for today's advanced real estate vocab, we're talking about amortization versus depreciation. Now, this is a really hot search term and sometimes people confuse these two terms. So, what I wanted to do today is just break it down for you and get into the nitty-gritty of really what it is. First of all, let's tackle what an amortization schedule is. So, if you buy a house with a 30-year mortgage, you need to understand something. It's not like you're paying a portion of interest and a portion of principle that is the same every month for 360 months or 30 years. What the banks are doing instead is they're saying, "You know what, we're the bank, we set the rules." And the rules that we make say that it should be mostly interest upfront, with a little bit going to principal. And after years and years of paying on a mortgage, we'll start letting less of it go to interest and more go to principal. And by the way, after 30 years, by the time you've paid the house off, you'll have paid a certain amount of interest and obviously enough principal to pay off the house. So, how much interest are you really being charged? On average, you're gonna pay for your house two and a half times over 30 years. Yeah, so if you have a $300,000 house, you're...