The repayment of a mortgage loan by installments with regular payments to cover the principal and interest. amortization term The amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of months. For example, for a 30-year fixed-rate mortgage, the amortization term is 360 months.
Home Sale Calculator According to an independent study of on-market homes, the Redfin Estimate is the most accurate among leading automated home-value tools. We provide the most accurate value of a home for sale-more than twice as likely to be within 3% of the home’s selling price as other top online home.Define Balloon Payment DEFINITION of ‘Balloon Loan’. A balloon loan is a type of loan that does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required at the end of the term to repay the remaining principal balance of the loan.
DEFINITION of ‘Term Loan’. A term loan is for equipment, real estate or working capital paid off between one and 25 years. The loan carries a fixed or variable interest rate, monthly or quarterly repayment schedule, and a set maturity date. The loan requires collateral and a rigorous approval process to reduce the risk of repayment.
By Amy Fontinelle. A mortgage is a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large real estate purchases without paying the entire value of the purchase up front.
A written document evidencing the lien on a property taken by a lender as security for the repayment of a loan. The term "mortgage" or "mortgage loan" is used loosely to refer both to the lien and the loan. In most cases, they are defined in two separate documents: a mortgage and a note.
Bankrate Mortgage Payoff Calculator This debt payoff calculator can show how to accelerate the debt payoff. The process is simple; just apply a portion of the consolidated loan’s monthly payment savings to the consolidated loan’s.
This down payment may be expressed as a portion of the value of the property (see below for a definition of this term). The loan to value ratio (or LTV) is the size of the loan against the value of the property. Therefore, a mortgage loan in which the purchaser has made a down payment of 20% has a loan to value ratio of 80%.
Mortgage Term. With so much focus on mortgage rates, consumers often neglect one of the most important decisions in mortgage financing, choosing the mortgage term. It is not always about choosing the lowest rate but more so about choosing the mortgage product with the conditions and mortgage term that best fits your needs.
Definition of loan term: Period over which a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated for another term. See also loan terms.