标题: Fully amortized at maturity or over life? [打印本页] 作者: torontoanalyst 时间: 2011-7-11 19:29 标题: Fully amortized at maturity or over life?
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!作者: RepoToronto 时间: 2011-7-11 19:29
The both mean the same thing.
Both HEL and MHL consist of net interest, regularly scheduled payments and prepayments.作者: Rasec 时间: 2011-7-11 19:29
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
