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Points Explained |
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What are morgage points and when, if ever, does it make sense to pay them? |
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Fees Explained |
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What are the 'real' costs of my Morgage? This will help explain exactly where your money is going -
and where it shouldn't be going...
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Learn More
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Morgage Glossary |
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Become an informed borrower by familiarizing yourself with common terms used throughout the morgage process...
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Morgage Amortization Defined and Explained
Morgage amortization is the repayment of principal from
scheduled mortgage payments that exceed the amount of interest due.
The scheduled payment less the interest equals amortization. The loan balance declines by the amount
of the scheduled payment, plus the amount of any extra payment. At the end of the Amortization Term
the balance will be paid according to terms of the loan.
If you are interested in viewing an amortization graph, chart or spreadsheet you can use our
Morgage Amortization Calculator to view a full Excel
Calculation of your amortization. The table will illustrate how the amount of interest
gradually decreases over time as more money goes toward the principal balance.
Other Important Morgage Terms
Abstract of Title – A summary of recorded transactions concerning
Acceleration Clause - Provision in a mortgage that gives the lender the right to require immediate
repayment of the loan balance if regular mortgage payments are not made or if other clauses in the
mortgage are breached.
Accrued Interest - Interest earned but not yet paid.
Addendum - A supplemental document for borrowers advising them of the characteristics
of the mortgage loan they are applying for. This document is often required when applying for a
government loan program.
Adjustment Interval/Period – The time between changes in the interest rate on an ARM
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Morgage Amortization Explained - Defines What Payment Amortization is...
We don't sell your information to multiple morgage brokers and call it 'competition'
