self-amortizing mortgage

Definition

A mortgage in which all principal is paid off in a specified period of time (often 15 or 30 years) through regular principal and interest payments. The advantage of such a mortgage is that the home-owner is not left with a large lump-sum at the end of the mortgage period. The disadvantage is that periodic payments are higher than if the mortgage simply covered the interest.

Featured Advertiser

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
self-administered REIT self-dealing