What Is Loan Amortization?
Applying for and receiving a mortgage from a lender is a commitment that will last for many years. Over time and with each payment made, you begin to repay the loan, earning equity in return. Through the process of getting a mortgage, you have agreed to pay the cost of the home as well as the interest that accrues. The type of mortgage you choose as well as the interest rate will determine your monthly payment.
The amortization of a loan is the time it will take to pay it off in full. With each mortgage payment you make, the overall amount owed is reduced. Mortgage loan amortization shows the amount of each monthly payment that goes toward the principal and what portion goes toward the interest that you’ll incur over the length of the loan.
A loan amortization table provides insight on the ratio between the principal and interest payments made each month. It also provides you with a good idea of just how much the principal of a loan will lessen over a period of time as well as the total interest paid at the end of the loan period. It’s also a helpful way to analyze loan differences and gain an understanding of how long it’ll take to repay the loan in its entirety.
In many cases, lenders will allow you to make additional payments. This will decrease the overall length of time it takes to pay off your loan. If you have the means to begin to pay a little extra, it will help increase your home equity faster.
Mortgage amortization is another aspect to consider when choosing a mortgage. There are online amortization calculators to help you get a better sense of how long it’ll take to pay off your mortgage. Speak to your mortgage broker for guidance.
What is the GLM Mortgage Group?
GLM Mortgage Group, powered by Dominion Lending Centres, is your Vancouver and Lower Mainland Mortgage Brokerage service. We are always ready to move forward with you to obtain the mortgage you need with the sharpest mortgage rate available. Whether it’s a fixed rate or variable rate mortgage you are after, we are dedicated to finding the best mortgage rates in Vancouver, including Home Loans, Consolidation Loans, Lines of Credit and more. No matter what you need, our team of Mortgage Specialists will follow through to find the best mortgage product that fits your individual circumstances. Our free online mortgage calculator keeps you informed on how much your mortgage payment will be as well as show how different mortgage rates will affect the mortgage you require.As your Vancouver mortgage broker, GLM Mortgage is committed to clear communication with our clients. We make sure you are informed on all the mortgage options available to you. We call you back within 90 minutes to make sure that you have the fastest service available. We are not only available in Vancouver and the Lower Mainland, we are also available across Canada.GLM Mortgage Group is your Vancouver mortgage specialist. With over 22 years of experience in the investment industry we know how to wade through the challenging process of getting a mortgage. We provide smarter options to putting your mortgage in place. We know how important it is to have an experienced professional Mortgage Specialist available to walk through your mortgage experience and stay with you through to the very end.We get you a fast “YES” at the sharpest rate… guaranteed! Call us now so that you can get that mortgage you’ve been waiting for. We already have been working for you, making sure that you will have every option of a mortgage available to you. GLM Mortgage Group is on call for you!