100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Amortization Type Questions And Answers Guaranteed Pass. R244,50   Add to cart

Exam (elaborations)

Amortization Type Questions And Answers Guaranteed Pass.

 5 views  0 purchase
  • Course
  • AMORTIZATION
  • Institution
  • AMORTIZATION

fully amortizing loan - correct answer fully repaid at maturity by periodic reduction of the principal. When a loan is fully amortized, the payments the borrower makes are equal over the duration of the loan. Any mortgage other than a 30-year, fully amorti...

[Show more]

Preview 1 out of 1  pages

  • October 11, 2024
  • 1
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • AMORTIZATION
  • AMORTIZATION
avatar-seller
Amortization Type

fully amortizing loan - correct answer fully repaid at maturity by periodic reduction

of the principal. When a loan is fully amortized, the payments the

borrower makes are equal over the duration of the loan. Any mortgage

other than a 30-year, fully amortizing, fixed-rate mortgage is a

nontraditional mortgage.



partially amortizing loan - correct answer a repayment schedule that is not

sufficient to pay off the loan over its term. This type of loan calls for

regular, periodic payments of principal and interest for a specified period

of time. At maturity, the remaining unpaid principal balance is due as a

balloon payment. A balloon payment is substantially larger than any

other payment and repays the debt in full.



straight loan - correct answer is not amortized. The borrower only makes periodic
interest payments during the term of the loan. The entire principal balance is due in one lump sum upon
maturity. These loans are also called

interest-only loans. This type of loan is not commonly offered by institutional lenders but may be offered
by a seller or a private lender to a buyer.



Loan products differ based on the terms of the loan - correct answer which include
the amount borrowed, interest rate, length of the loan, and amortization type. Amortization type is the
basis for how a loan will be repaid. The type of amortization influences changes in repayment terms
during the life of the loan. The most common amortization types include fixed-rate loans, adjustable-
rate mortgages (ARM), and graduated payment mortgages

(GPM)

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller RealGrades. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R244,50. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80796 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R244,50
  • (0)
  Buy now