self-amortizing mortgage

(redirected from Amortizing Mortgage)

Self-amortizing mortgage

Mortgage whose entire principal is paid off in a specified period of time with regular interest and principal payments.

Self-Amortizing Mortgage

A mortgage in which the holder pays for part of the principal and the interest each month. A self-amortizing mortgage differs from an interest-only mortgage, in which the holder does not make principal payments over the life of the mortgage. An advantage of a self-amortizing mortgage is the fact that the holder does not have to make a lump sum payment of the principal at maturity (or refinance at a potentially higher interest rate). However, self-amortizing mortgages have higher monthly payments than other mortgage types.

self-amortizing mortgage

See fully amortizing loan.

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References in periodicals archive ?
12 The distinguishing characteristic of non-amortizing contracts is that they allow the borrower to make a lower payment initially compared with, say, a conventional fixed-rate amortizing mortgage.
The initial five years of the loan will be interest-only and then convert to an amortizing mortgage over a 30-year schedule.
Planning for the long term, this cooperative chose a 25 year fully amortizing mortgage which closed at an interest rate of 9.