Question about mortgage?

Question

What is mortgage term and rate?and also what is amortization period?

Answer 1

http://www.bankrate.com/

This site should answer all your questions.

Answer 2

The term is the number of months/years you pay.

The rate is the interest rate on the loan, either fixed - does not change over the life of the loan - or variable - can change at specified intervals over the life of the loan.

The ammortization period is basically the same as the term.  It's how long you pay on the principal and interest balance.  The ammortization sheet you should receive shows how much of each payment goes toward principal and how much goes toward interest.  Your interest contribution will start out high, but should decrease with each payment until you are paying much more in principal.  Unless you have an interest only loan, you should never end up paying all interest or all principal.

Answer 3

The term rate is the interest rate you are qualified for based on your credit score and how you have paid your debts in the past.

Term is the amount of time a lender will give you to pay your mortgage complete. A term would be for 15, 20 or 30 years

Amortization is the payment of a loan that are equal so as both principal and interest are paid in equal installments over a period of time.

I hope this has been of some use to you, good luck.

"FIGHT ON "

Answer 4

Mortgage term- for how long you borrow the money (15, 20 ,30 years)

Rate- what is your interest rate on the loan

Amortization- how much from your monthly payment going towards your principal ( loan amount) and how much will go for the interest.