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What Should a Borrower Who Intends to Pay Down the Mortgage Balance Early, Know About the Amortization Process? How Do Amortized Mortgages Work? How Does a Savvy Borrower Arrange Payments to Take Maximum Advantage of the Conventional Payment Rules? What Is the Single Greatest Danger to Borrowers in These Rules?
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-The amortization period is longer than the loan period-The monthly payments do not fully pay off the loan by the end of the loan period -The borrower makes a large balloon payment at the end of the loan period.-The monthly payment is based on a longer amortization period than the maturity of the loan.
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