Accelerated Amortization
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Accelerated Amortization
Paying principal amounts in excess of the minimum required by the mortgage contract so as to shorten the effective term of the loan.
Example: A mortgage is originated for $100,000 at 8% interest for 30 years. The monthly principal and interest payment is $733.76. By increasing the payment by $100 per month, accelerated amortization will result in a loan payoff period of slightly more than 20 years.
Example: A mortgage is originated for $100,000 at 8% interest for 30 years. The monthly principal and interest payment is $733.76. By increasing the payment by $100 per month, accelerated amortization will result in a loan payoff period of slightly more than 20 years.
| Accelerate (a debt), Abut | |
| Accelerated Cost Recovery System (ACRS), Accelerated Depreciation |
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Barron's Real Estate Dictionary
Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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