Amortization…Did I hear that on Star Track?
Mar 4th, 2010 at 5:43 PM
Although it sounds like an other-worldly word, this is actually a common Real Estate Term.
So what does it mean?
amortization:
The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time
amortization schedule:
A table which shows how much of each payment will be applied toward principal and how much toward interest over the life of the loan. It also shows the gradual decrease of the loan balance until it reaches zero.
( Information Taken from: RealEstateABC.com © 1998 – 2010 RealEstateABC.com. All Rights Reserved.)
Make sure to contact New England Real Estate Organization with questions regarding “Amortization”.
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