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23 October, 20:45

When a mortgage loan with level periodic payments has been completely repaid by the maturity date, it is said to be?

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  1. 23 October, 20:59
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    When a mortgaged loan loan has been completely repaid by maturity date, the loan is said to be fully amortized. For example, you buy a house for $100. The interest on this house is 10% and the mortgage term is 1 year, your mortgage will be repaid in Nov 2018 by paying $9 every month, with a total interest of $5. You repaid the mortgage with interest. Then it is said to be fully amortized.
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