amortization term

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Amortization Term

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

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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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).
Initially, servicers provided relief via expansion of amortization term--on average, the amortization term was approximately 3 percent longer for modified loans overall.
Two of the most significant are longer amortization terms and shorter redemption provisions.
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.
Spreads continue to shrink while loan-to-value (LTV) ratios and amortization terms moved somewhat in favor of the borrower.
Amortization terms generally range from 20 to 25 years, with sporadic instances of 30-year schedules.