term: Term Mortgages and Amortized Level-Payment Mortgages - 10/11/11 01:31 AM
 With a Term Mortgage buyers pay the interest only until the full term of the mortgage expires. 
Then they pay all the principal or refinance the loan. A term mortgage is a non-amortizing loan.
Term mortgages are used for short term financing such as for construction loans.
 
The most popular loan payment plan is the fully amortized level-payment mortgage. A fully amortized mortgage is one with regular payments each month of principal and interest.  Amortize mean to end or extinguish. The amortized  mortgage loan is gradually extinguished by payment. 
·    The payment remains the same each month.  It is a (level … (0 comments)

 


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