F. Ernest Jerome
| Amortization period | The total length of time to repay a loan with equal regular payments.
(See page 524.)
|
 |
|
|
| Closed mortgage | A mortgage that does not permit any penalty-free payments.
(See page 556.)
|
|
|
|
| Face value | (of a mortgage) The initial principal amount of a mortgage.
(See page 548.)
|
|
|
|
| Fully open mortgage | A mortgage loan that p laces no restrictions on extra payments by the borrower.
(See page 556.)
|
|
|
|
| Loan amortization schedule | A table presenting the details of the interest and principal components of each payment, and the balance after each payment.
(See page 541.)
|
|
|
|
| Mortgagee | The party lending money on the security of a mortgage.
(See page 548.)
|
|
|
|
| Mortgager | The party borrowing money and giving a mortgage as security on the loan.
(See page 548.)
|
|
|
|
| Open mortgage | See fully open mortgage and partially open mortgage.
|
|
|
|
| Partially open mortgage | A mortgage that grants limited penalty-free prepayment privileges
(See page 557.)
|
|
|
|
| Prepayments | Any loan payments in addition to the regular contractual payments.
(See page 556.)
|
|
|
|
| Prospective Method | A method for calculating a loan's balance based on payments still to be made.
(See page 527.)
|
|
|
|
| Retrospective Method | A method for calculating a loan's balance based on payments already made.
(See page 527.)
|
|
|
|
| Term | (of a mortgage) The length of time from the date the loan is advanced to the date on which the remaining balance is payable.
(See page 548.)
|
|
|
|
| Term loan | A loan that must be repaid over a predetermined time period.
(See page 524.)
|
2003 McGraw-Hill Higher Education