Fully amortized at maturity or over life?

payments, difference

What is the difference when we say a Home Equity Loan (HEL) is fully amortized at maturity and a Manufactured House Loan is fully amortized over life of loan?

From what I feel is that, the HEL is a bullet payment on the maturity of the loan (if fully amortized at maturity?)

And the MHL is payments distributed over life of the loan..

Help!

RepoToronto

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发表于 2011-7-11 19:29 | 只看该作者

The both mean the same thing.

Both HEL and MHL consist of net interest, regularly scheduled payments and prepayments.

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Rasec

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发表于 2011-7-11 19:29 | 只看该作者

Thanks. Got confused by the different sentences.

Basically then paying the whole principal only at maturity rather than over the life of the loan would be a non-amortizing loan? (less of a balloon loan but just for comparisons where a balloon loan does not fully amortize at maturity, and requires a balloon payment at the end of the term equivalent to the remaining principal of the loan left)

OR like a credit card receivable which is a revolving credit

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Fully amortized at maturity or over life?

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