amortization term

(redirected from Amortization Terms)

Amortization Term

The period of time over which a mortgage or other loan is amortized. See also: Repayment period.

term, amortization

The number of years over which a loan will be completely paid by regular monthly payments of principal and interest.Terms of 20,25,and 30 years are common with residential mortgages.New regulations allow terms as long as 50 years.Especially in commercial real estate, it is very common to have amortization terms longer than loan terms.A lender may offer a “10-year loan on a 30-year am”which means the regular monthly payments will pay the loan in full by the end of 30 years,but the entire loan balance will be due at the end of 10 years.

Mentioned in ?
References in periodicals archive ?
We offer low rate loans with terms of 3 year, 5 year, 7 year and 10 years with amortization terms of 10 years, 15 years, 20 years, 25 years and 30 years.
Return: The effective coupon available to the excess proceeds once identical coupon and amortization terms are applied to market proceeds (or A-note portion of the modified loan).
Two of the most significant are longer amortization terms and shorter redemption provisions.
Investors may now gather additional statistics from PoolTalk on Whole Loan-Backed REMIC Security Collateral Subgroups, including Weighted Average Coupon (WAC) and Weighted Average Maturity (WAM) Quartiles, as well as distributions on Loan Age, Loan Size, WAC, WAM, Geographic Location, Origination Year, Amortization Terms, Amortization Type, Property Type, Occupancy, and Loan Purpose.
Only private banking was able to structure the deal with the amortization terms we wanted," he says.
The loan value (capacity) is then determined by taking the same historical net operating income, the projected interest rate, amortization terms and the target debt service coverage to calculate the present value of expected earnings.
Wall Street financing available through Cambridge also offer longer amortization terms and a cash-out option that usually is not available with conventional loans.
The SBA 504 loan program offered through Florida First Capital offers up to 90% financing at below-market, fixed interest rates with amortization terms up to 20 years.
Spreads continue to shrink while loan-to-value (LTV) ratios and amortization terms moved somewhat in favor of the borrower.
The program provides lower interest rates and longer amortization terms for commercial construction or rehabilitation projects in the targeted areas of both counties.
Amortization terms generally range from 20 to 25 years, with sporadic instances of 30-year schedules.
Due to this predictability we believe that we will be able to obtain amortization terms more consistent with our cash flows.