amortization

When you repay a loan in installments (as opposed to paying it all at once), the loan is said to be “amortized”. However, the word “amortization” also refers to the time span used to calculate your payments. For example, if your mortgage has a 25-year amortization, that means it will take 25 years to pay it off at the current rate. This should not be confused with the term of your mortgage, which indicates how long you have until the mortgage must be re-negotiated. (For example, you might have a 25-year amortization, but a 3-year term.)

Have a question? Don't hesitate to ask me, I'll be happy to help.

Home to Home Realty Inc., Brokerage — 23 Epsom Downs Drive, Brampton, ON L6T 1Y7
Ph: 905-793-9233 — Fax: 905-799-6164
Not intended to solicit those already under contract with a brokerage