This is a little confusing. The non-amortizing loan is a loan that is paid off over time. The amortizing loan has a fixed cost and must be paid off on a specific date.
Like most, my understanding was that the amortizing loan had the same pay-down date as the non-amortizing loan, so I was surprised to learn that the amortizing loan has no pay-down date. But I guess that’s the way most people think of the amortizing loan.
The amortizing loan is a type of loan that pays off immediately but requires no repayments for the life of the loan. The amortizing loan is usually the most popular type of loan in the US, but it is not as common in Canada. The amortizing loan can be used to buy a house or a car or any other type of asset. It is also sometimes used to pay off fixed-rate student loans.
As it turns out, the amortizing loan doesn’t actually have an amortizing date. Instead it is a type of loan that is repayable immediately. The amortizing loan is typically a one-time use loan that must be repaid over a period of time. But in Canada, the amortizing loan is allowed to be used every year. The amortizing loan is not a type of loan that can be used for many years to pay off a given amount.
I was always taught that the amortizing loan is for a fixed amount of time. I knew it was the same as a regular payment on a mortgage, but it was never explained this way. This was until I started doing my own research. I now believe that the amortizing loan must be repaid over a period of time with interest. I have a hard time believing that the amortizing loan should be used every year.
So how can someone with a fixed amount of money want to use an amortizing loan? A number of factors come to mind. A loan should be used to pay off the interest on something you have, or to pay for your mortgage. A loan should not be used to pay down debt. A loan should be used to pay down a fixed amount of debt, or to pay off a fixed amount of savings.
I don’t have a hard time believing that amortizing loans are good financial vehicles. The debt is amortized by the interest rate and if interest rates go up, then the loan can be repaid faster. Also, since it’s assumed that a fixed amount of money is given to you every month, you don’t have to pay it off every month. You only need to pay it off a fixed amount of time.
In general, I think that a loan should be amortized. However, amortizing a loan is not just a matter of how much interest it has to pay. There is a difference between paying it off at the end of its term and paying it off monthly.
It’s hard to define amortization because of the different ways that interest rates have changed over time. In the past, rates were fixed for the life of the loan. A fixed rate of interest allowed you to plan and pay it off. However, as interest rates have fluctuated over time, a fixed rate has become less and less common.
