Amortized mortgage Flashcards
(7 cards)
1
Q
A fixed-rate amortized mortgage consists of a series of ___, ____ monthly payments over the loan term
A
fixed, monthly
2
Q
At the end of an amortized mortgage loan term, the loan is ____
A
completely paid off
3
Q
For an amortized mortgage, the ____ and ____ are included in each payment
A
principal & interest
4
Q
What is the principal?
A
the original loan amount, amortized into monthly payments
5
Q
What is the interest?
A
the cost of borrowing the money, amortized into monthly payments
6
Q
What is a mortgage amortization table?
A
a spreadsheet that lists each monthly payment over the entire loan term
7
Q
Amortization allocates each monthly payment into ___ and ___
A
principal and interest
