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Amortized Loan

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Amortized Loan
A loan with the same payment each pay period. In an amortized loan, different amounts go to principal and interest each month. This allows the lender to receive the full amount of interest while also keeping periodic payments equal. See also: Self-Amortizing loan.


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If you are aware of the various types of mortgage refinancing you are probably also in the know about the difference between an interest-only mortgage and an amortized loan.
The Variable Rate Mortgage is one type of the amortized loan.
The Home Start program offers a 30-year fixed rate amortized loan insured by the Federal Housing Administration (FHA) along with a zero-interest, short-term advance loan of up to $6,000 to use towards a down payment on their home purchase and to be paid back when they earn their tax credit in 2010.
 
 
 
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