Amortization Schedules This article provides useful, detailed information about Amortization Schedules. The term \"amortization\" has different meanings within different contexts. For example, it refers to the allocation of a lump sum... Home Loans And Negative Amortization Owning a home is undoubtedly the American Dream and the bedrock of middle class. Negative amortization, however, can turn the dream into a nightmare if you are not careful. Home Loans and Negative... Loan Amortization Schedules This article provides useful, detailed information about Loan Amortization Schedules. An \"amortization schedule,\" in general, is a record of loan or mortgage... Repayment Mortgages (Amortization) Qute simply, a repayment mortgage is an arrangement where the ultimate goal is to pay off the mortgage on a property. This is the most common type of payment agreement for both business and ... The Amortization Schedule: Take A Closer Look Your amortization schedule provides you with a wide range of information about the mortgage that you are taking on. This information may not seem important right now, but when you use it to... Mortgage Amortization A mortgage is a technique that is used to create a lien on real estate by a contract. It is an instrument that the borrower called the mortgagor uses to pledge real property to the lender called the mortgagee as a security for a debt. While going through the mortgage transaction a borrower has often to make payment of interest and a portion of the outstanding principal balance during each payment cycle. This is where mortgage amortization comes in. Mortgage Amortization is the repayment of a mortgage loan by installments with regular payments to cover the principal and interest. It is the process of reducing principal and interest in equal installment payments at specific intervals over a set term. A fully amortized loan payment is a portion of which will be applied to pay the accruing interest on the loan, with the remainder being applied to principal. Generally with each payment, you pay back part of the money originally borrowed (the principal) plus interest on the declining balance of the principal. The amount of your periodic payments depends, in part, on the principal, the interest rate and the length of time allowed for repayment. Thus in this way the loan is paid off in the specified term. Amortization term is the amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of months. Amortization period is the length of time, commonly 25 years that it takes to completely pay off a mortgage through repayment of the original debt or principal and the accumulated interest. Assumption of a mortgage - the buyer of a property agrees to take over repayment of the current owner mortgage as part of an agreement to purchase the property, usually to save the current owner discharge costs or because the existing interest rate and term are attractive. Negative Amortization is a loan in which the interest rate and payment may change independently from each other creating the potential for the principal balance of the loan to increase rather than decrease over the term of the loan. Negative amortization loans could land borrowers in trouble when interest rates rise and their monthly payments soar out of reach, the experts warn. It leaves borrowers with a higher principal and is a technical description of a financially poisonous loan. About the author: Lance Wiliams is an accomplished contributing writer for http://www.mortgagefit.com/ presently working in association with http://www.mortgagefit.com/mortgage-amortization.html He specialises in mortgage and real estate arena. Privacy Policy