Mortgage Term Definition

typically applied to the term of a home loan or mortgage; the life span of a mortgage; for example, a 15-year loan matures in 15 years, the period of time in which the debt must be paid off. Mortgage a legal document between a mortgagor and a mortgagee that establishes a home and/or property as security for a home loan.

The flat amount is calculated so that the whole of the loan has been repaid by the end of the mortgage term. Interest-only mortgage – where the payments to the lender cover interest only. No capital is repaid, so that the full amount of the loan is still outstanding at the end of the mortgage term.

Bankrate Mortgage Interest Calculator Just enter the amount and terms, and our mortgage calculator does the rest. Click on "Show Amortization" Table to see how much interest you’ll pay each month and over the lifetime of the loan. The mortgage loan calculator will also show how extra payments can accelerate your payoff and save thousands in interest charges.

A stretch loan is a form of financing for an individual or a business that can be used to cover a short-term gap. In effect, the loan "stretches" over that gap, so that the borrower can meet financial.

Covenant-lite loans provide borrowers with a higher level. worry when a deal does not receive the kind of favorable financing terms that would fit the definition of a covenant-lite loan. Their.

balloon mortgage amortization Promissory Note With balloon payment sample promissory note (balloon Payment) When loaning or borrowing money, use a promissory note as the contract covering the terms of repayment. If you need to outline how a loan must be repaid, a promissory note is the legal form to use.What Does Balloon Payment Mean A balloon loan is a type of loan that does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required at the end of the term to repay the remaining principal.. the loan originator must present the borrower a loan with the lowest available interest rate, and that does not contain any risky features such as prepayment penalties, negative amortization or.Simple Mortgage Agreement A Mortgage Agreement is a pledge by a borrower that they will relinquish their claim to the property if they cannot pay their loan. Contrary to common belief, a Mortgage Agreement isn’t the loan itself; it’s a lien on the property.

Term: Mortgage loans generally have a maximum term, that is, the number of years after which an amortizing loan will be repaid. Some mortgage loans may have no amortization, or require full repayment of any remaining balance at a certain date, or even negative amortization.

DEFINITION of ‘Term Loan’. A term loan is for equipment, real estate or working capital paid off between one and 25 years. The loan carries a fixed or variable interest rate, monthly or quarterly repayment schedule, and a set maturity date. The loan requires collateral and a rigorous approval process to reduce the risk of repayment.

Reverse Mortgage Glossary of Terms. Adjustable Rate: An interest rate that will change during the life of the loan based on an index.. Annuity: An insurance product that pays out an income stream and is often used as part of a retirement strategy. Appraisal: A professional estimate of the value of your home based on the features of the property and comparable sales in the area.