Maximum Amortization

The maximum number of periodic installments (expressed in years) over which repayment of a mortgage debt is calculated; a portion of each payment consists of a blend of interest and amortization of principal. For example, if a loan has a 25 year amortization schedule and a 10 year term, a balloon payment of the outstanding principal will be due at the end of the tenth year.

Maximum Amortization
Definition The maximum number of periodic installments (expressed in years) over which repayment of a mortgage debt is calculated; a portion of each payment consists of a blend of interest and amortization of principal. For example, if a loan has a 25 year amortization schedule and a 10 year term, a balloon payment of the outstanding principal will be due at the end of the tenth year.
Type of Word Noun
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