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Amortization Schedule
An amortization schedule is a table detailing each periodic payment on an amortizing loan (typically a mortgage), as generated by an amortization calculator. Amortization refers to the process of paying off a debt (often from a loan or mortgage) over time through regular payments. A portion of each payment is for interest while the remaining amount is applied towards the principal balance. The percentage of interest versus principal in each payment is determined in an amortization schedule. The schedule differentiates the portion of payment that belongs to interest expense from the portion used to close the gap of a discount or premium from the principal after each payment. While a portion of every payment is applied towards both the interest and the principal balance of the loan, the exact amount applied to principal each time varies (with the remainder going to interest). An amortization schedule indicates the specific monetary amount put towards interest, as well as the specific ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Amortizing Loan
In banking and finance, an amortizing loan is a loan where the principal of the loan is paid down over the life of the loan (that is, amortized) according to an amortization schedule, typically through equal payments. Similarly, an amortizing bond is a bond that repays part of the principal ( face value) along with the coupon payments. Compare with a sinking fund, which amortizes the total debt outstanding by repurchasing some bonds. Each payment to the lender will consist of a portion of interest and a portion of principal. Mortgage loans are typically amortizing loans. The calculations for an amortizing loan are those of an annuity using the time value of money formulas and can be done using an amortization calculator. An amortizing loan should be contrasted with a bullet loan, where a large portion of the loan will be paid at the final maturity date instead of being paid down gradually over the loan's life. An accumulated amortization loan represents the amount of amortizat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mortgage Loan
A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is " secured" on the borrower's property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property ("foreclosure" or " repossession") to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word ''mortgage'' is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can also be described as "a borrower giving consideration in the form ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Amortization Calculator
An amortization calculator is used to determine the periodic payment amount due on a loan (typically a mortgage), based on the amortization process. The amortization repayment model factors varying amounts of both interest and principal into every installment, though the total amount of each payment is the same. An amortization schedule calculator is often used to adjust the loan amount until the monthly payments will fit comfortably into budget, and can vary the interest rate to see the difference a better rate might make in the kind of home or car one can afford. An amortization calculator can also reveal the exact dollar amount that goes towards interest and the exact dollar amount that goes towards principal out of each individual payment. The amortization schedule is a table delineating these figures across the duration of the loan in chronological order. The formula The calculation used to arrive at the periodic payment amount assumes that the first payment is not due on t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Interest
In finance and economics, interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party. It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs. For example, a customer would usually pay interest to borrow from a bank, so they pay the bank an amount which is more than the amount they borrowed; or a customer may earn interest on their savings, and so they may withdraw more than they originally deposited. In the case of savings, the customer is the lender, and the bank plays the role of the borrower. Interest diff ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Principal Balance
The principal balance, in regard to a mortgage or other instrument of debt, is the amount due and owed to satisfy the payoff of an underlying obligation, sans interest or other charges. Amortized mortgage loans automatically pay a portion of each monthly payment to the principal balance, with the rest being paid as interest. An interest-only loan doesn't require any money to be paid toward the principal balance each month, but such payment is allowable. See also *Unpaid principal balance Unpaid principal balance (UPB) is the portion of a loan (e.g. a mortgage loan) at a certain point in time that has not yet been remitted to the lender. For a typical consumer loan such as a home mortgage or automobile loan, the original unpaid pr ... References Mortgage {{finance-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bullet Loan
A bullet is a kinetic projectile, a component of firearm ammunition that is shot from a gun barrel. Bullets are made of a variety of materials, such as copper, lead, steel, polymer, rubber and even wax. Bullets are made in various shapes and constructions (depending on the intended applications), including specialized functions such as hunting, target shooting, training and combat. Bullets are often tapered, making them more aerodynamic. Bullet sizes are expressed by their weights and diameters (referred to as "calibers") in both imperial and metric measurement systems. For example: 55 grain .223 caliber bullets are of the same weight and caliber as 3.56 gram 5.56mm caliber bullets. Bullets do not normally contain explosives but strike or damage the intended target by transferring kinetic energy upon impact and penetration. Bullets shot by firearms can be used for target practice or hunting. Description The term ''bullet'' is from Middle French, originating as the diminutive ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Negative Amortization
In finance, negative amortization (also known as NegAm, deferred interest or graduated payment mortgage) occurs whenever the loan payment for any period is less than the interest charged over that period so that the outstanding balance of the loan increases. As an amortization method the shorted amount (difference between interest and repayment) is then added to the total amount owed to the lender. Such a practice would have to be agreed upon before shorting the payment so as to avoid default on payment. This method is generally used in an introductory period before loan payments exceed interest and the loan becomes self-amortizing. The term is most often used for mortgage loans; corporate loans with negative amortization are called PIK loans. Amortization refers to the process of paying off a debt (often from a loan or mortgage) through regular payments. A portion of each payment is for interest while the remaining amount is applied towards the principal balance. The percentage ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Chronological Order
Chronology (from Latin ''chronologia'', from Ancient Greek , ''chrónos'', "time"; and , ''-logia'') is the science of arranging events in their order of occurrence in time. Consider, for example, the use of a timeline or sequence of events. It is also "the determination of the actual temporal sequence of past events".Memidex/WordNet, "chronology,memidex.com (accessed September 25, 2010). Chronology is a part of periodization. It is also a part of the discipline of history including earth history, the earth sciences, and study of the geologic time scale. Related fields Chronology is the science of locating historical events in time. It relies upon chronometry, which is also known as timekeeping, and historiography, which examines the writing of history and the use of historical methods. Radiocarbon dating estimates the age of formerly living things by measuring the proportion of carbon-14 isotope in their carbon content. Dendrochronology estimates the age of trees by correlatio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Loan
In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that debt until it is repaid as well as to repay the principal amount borrowed. The document evidencing the debt (e.g., a promissory note) will normally specify, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and the date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower. The interest provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice, any material object might be lent. Ac ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
