What is the difference between term and amortization?
The term and amortization are often confused. The difference is the amortization of the mortgage is the entire length of time it will take for your mortgage to be paid completely with the set payment and your home to be “free and clear”. Your payment will be determined on the amortization period of your loan. The term is the time the lender agrees to give you the loan for. So you can have a 30 year term, but your payment is amortized over 40 years. This gives you a lower payment, but at 30 years you will have to have paid off the loan in complete or will have to pay off the remaining balance with a new mortgage.
We here at MortgageYes.com do all kinds of loans. Many loans out there have a term and amortization period that are the same, but we work with many lenders that do both.
Please contact one of our loan officers to get more information on the programs that our lenders offer. You can also check out our website to get additional information about mortgages. www.mortgageyes.com Here are some links to areas that might be of help.
http://www.mortgageyes.com/learn_about_home_buying.htm
http://www.mortgageyes.com/calculators.htm
