self-amortizing mortgage

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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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In our sample, such contracts accounted for 25 percent of homebuilder loans originated during 2005-08.12 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 ability to lower early payments is particularly pronounced in the case of the so-called negative amortization (or option ARM) contracts that allow payments to be less than the interest charges.
The initial five years of the loan will be interest-only and then convert to an amortizing mortgage over a 30-year schedule.
The strict interpretation of acquisition indebtedness may discourage some homeowners from amortizing mortgage debt quickly.
After all, the fixed-rate, 30-year, fully amortizing mortgage was a new product at some point.
The transaction certificates represent the beneficial interests in a 20-year, fixed-rate, fully amortizing mortgage loan secured by 105 self-storage properties located across 35 states.
Planning for the long term, this cooperative chose a 25 year fully amortizing mortgage which closed at an interest rate of 9.37 percent.
Both Table 1 and Table 2 assume a rather conservative resource commitment to setting up and amortizing mortgage loans.
The loans included in this transaction are fixed-rate, generally 30-year term, fully amortizing mortgages and were underwritten using rigorous credit standards and enhanced risk controls.
The loans included in this transaction are fixed-rate, generally 30-year term, fully amortizing mortgages, and were underwritten using rigorous credit standards and enhanced risk controls.
"We're starting to see an increase in delinquency rates in our IO book of business," Smith says, and the delinquency rates are rising faster than for the fixed-rate, 30-year amortizing mortgages. United Guaranty does not insure option ARMs.
While 40-year mortgages are amortizing mortgages, they spread the amortization over a longer period, so that in the initial years the portion of the payment dedicated to principal is lower than it would be with a 30-year mortgage.
Because many of the new mortgage products put less emphasis on building equity than did traditional, fully amortizing mortgages, Americans have lower levels of equity in their homes than ever before (see Figure 2).