Sentences with phrase «amortized over a fixed term»

Many types of consumer loans, including mortgages, car loans, and student loans, are amortized over a fixed term, during which borrowers pay the same amount each month.

Not exact matches

Alternatively, balloon loans are referred as a 30 - year mortgage, which have to be amortized over a 30 - year term, and are quite different from 30 year fixed rate mortgage.

@mbhunter: The rate is fixed for the term - 5 years - and the interest is amortized over a period of 25 years.

The next most popular term for a fixed mortgage is the 15 - year fixed loan, which amortizes over fifteen years, bumping up monthly mortgage payments significantly, but reducing the amount of interest paid throughout the duration of the loan considerably.

We offer both fixed rate long - term financing and mini-perm financing where the rate is fixed for a set number of years and amortized over a longer term.

Amortizing a loan means calculating a fixed monthly payment that will cover interest and repay the principal (the original amount you borrowed) over the course of your loan term.

For a hypothetical example of a $ 150,000 mortgage with a 5 year fixed - term, amortized over 25 years, a 4.8 % mortgage will be about $ 2300 cheaper over 5 years than a 5.05 % mortgage.

That is, an amortized loan requires a fixed payment over a fixed term, making it easy for borrowers to decide whether they can afford to take on new debt.

The following formula is used to calculate the fixed monthly payment (P) required to fully amortize a loan of L dollars over a term of n months at a monthly interest rate of c. [If the quoted rate is 6 %, for example, c is.06 / 12 or.005].

The mortgage carries a fixed interest rate that is fully amortizing over the 40 - year term.

Seller financing provides for the purchase price of the property to be paid with a low down payment (generally 10 to 30 per cent), the balance amortized over a long term (say 20 years) and a low interest rate (preferably fixed).