Repayment of paid develops over time according to a plan, called amortization, which are reported in detail the amounts to be paid and the time to be observed in the payment of installments.
Reimbursement schedules also affect the ability of the borrower to repay the capital in advance, in whole or in part. This will reduce [...]
Archive for April, 2009
The fixed rate mortgage
The fixed rate stays the same for the duration of the relationship and allows you to precisely define the payment plan. It is the optimal solution if the market rate rises, as it is disadvantageous if the market rate decreases.
The variable rate mortgage
The variable rate does not guarantee the [...]
The capped-rate mortgage
Derivation of one particular variable, allows to limit the risk of future rate increases. The borrower follows the benefits of varying stages of decline in the cost of money, but in case of upward and suffers the disadvantages to a certain limit defined cap.
This loan combines the characteristics of the typical financial [...]
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