Financing
By Cindy1 author12 articles
- Loan TypeAmortizing loans are paid down over time, while interest-only loans are due in full at the end of their term.
- Loan TermThe length of time after which a loan will be paid in full, or will have its remaining balance due.
- Amortization PeriodThe length of time it will take to pay off an amortizing loan in full, based on its interest rate and payment schedule.
- Compound IntervalThe interval at which interest is compounded when calculating amortizing loan payments.
- Mortgage Insurance (PMI)An additional upfront or recurring payment required by some lenders.
- Remaining EquityThe equity remaining in a property after a refinance, inverse of the new loan's LTV.
- Amount FinancedThe portion of a property's purchase price (and optionally the rehab costs) financed by the lender.
- Loan PaymentsThe principal and interest (or interest-only) payments required to repay your loan, excluding any escrow payments.
- Balloon PaymentsThe final payment on a balloon or an interest-only loan, equal to the remaining balance at the end of the loan term.
- Loan InterestThe portion of the loan payment that goes toward paying the interest on the loan.
- Financing ExpensesOne-time expenses you will pay when refinancing a property or paying balloon payments.
- Refinance CostsCosts and fees associated with refinancing a property, also called closing costs.