Repayment Mortgages (Amortization)
Qute simply, a repayment mortgage is an arrangement where the
ultimate goal is to pay off the mortgage on a property. This is
the most common type of payment agreement for both business and
home
morgages, as it gives the borrower the knowledge that they
are working towards an end goal.
Most repayment mortgages involve the setting of a fixed future
date when the loan will be paid off (although this can often be
changed later via morgage
refinancing). The most common term for these types of in the
US, Canada, and the UK is in the range of 20 to 30 years,
depending on the buyer's financial situation and prevailing morgage
rates at the time.