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fully amortizing loan

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fully amortizing loan

A loan calling for periodic payments that include some amount of interest and some amount of principal reduction,such that,at the end of the loan term,the entire principal amount of the loan plus all accrued interest will have been paid in full.



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These are 35 year fully amortizing loans with the rate fixed for the full term.
In laymen's terms, "non-traditional" has come to mean any mortgage loan product that is not a 30-year or 15-year fixed-rate, fully amortizing loan with full documentation and a 10 percent to 20 percent borrower down payment.
A fixed rate fully amortizing loan has two very distinct features.
 
 
 
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