This is not in their best interest, as
a longer amortization schedule lowers their debt service payments and the risk of default.
Not exact matches
If a mortgage with a
long first period relies on an APR calculated by the actuarial method, then the extra compounding may cause the first interest payment to be larger than the actual
scheduled payment, resulting in negative
amortization.
One borrower just wanted access to their payment history and the
amortization schedule (or how
long it would take for the loan to be paid in full) of a private loan.
It's similar to the
amortization schedule where it's the same periodic payment for the
longer of 5 years or 59 1/2.
Keep in mind that a
longer payback period or
amortization schedule usually means that you will have lower monthly payments, which can be an advantage if you are trying to control your budget.
These commenters believed that this
amortization schedule more fairly accounts for
longer and higher credentialed programs where students take out greater amounts of debt, better reflects actual student repayment patterns, and appropriately mirrors available loan repayment plans.
Some commenters supported the proposed
amortization schedule based on credential level but suggested
longer amortization periods than those proposed.
If you have Stafford loans with a standard, 10 - year
amortization schedule, consult with your lender about switching to an extended or graduated repayment plan; while stretching your payments to 25 years will leave you owing more interest in the
long run, your overall monthly payments will be cheaper.
«Despite the short - term, predominately single - tenant lease, the request was for
longer - term, low - rate financing without tenant improvement and leasing commission or lease - up reserves and a 30 - year
amortization schedule, instead of the more conservative standard of 25 years for commercial properties.