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Repayment Mortgages (Amortization)

Qute simply, a repayment mortgage is an arrangement where the ultimate goal is to pay off the mortgage on a property. This is the most common type of payment agreement for both business and home morgages, as it gives the borrower the knowledge that they are working towards an end goal.

Most repayment mortgages involve the setting of a fixed future date when the loan will be paid off (although this can often be changed later via morgage refinancing). The most common term for these types of in the US, Canada, and the UK is in the range of 20 to 30 years, depending on the buyer's financial situation and prevailing morgage rates at the time.


About the Author: Jeremy Maddock is the webmaster of FinanceFacts.info, a useful source of finance articles.




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