Read about loan amortization
The beauty of amortization lies in its consistency. This is true even though these loan amortizations are normally offered at interest rates about 2 percentage points higher that ARM or adjustable rate mortgage loans. The percentage of interest versus principal in each payment is determined in an amortization schedule. The term amortization is also used in connection with loans when we speak about loan amortization. Also the monthly payments will remain level for the life of the loan and are agreed to pay back the loan at the end of the loan period. The mortgage account itself begins on the first day of the month that proceeds the month that the mortgage became “active”.
November 23rd, 2011 Posted in General