Amortization calculates how loans (like fixed-rate mortgages) are allocated towards principal and interest payments over the loan term.  It may also refer to an accounting method that expenses the cost of an intangible asset over time on a company’s financial statements. Note: Amortization in accounting is covered below.
An amortization schedule is a chart that shows the amounts of principal and interest due for each loan payment of an amortizing loan.An amortizing loan is a loan that requires regular payments, where each payment is the same total amount.
Created by Congress in 1932, the Federal Home Loan Bank System (FHLB) is a lending system for financial institutions. FHL banks offer loans to their members, which are other banks, credit unions, community development financial institutions and insurance companies.
Mortgage life insurance is an insurance policy which fully repays the balance of a mortgage in the event the borrower dies. Mortgages have long-term horizons -- usually 30 years.
For mortgages, negative points are a strategy for qualified borrowers to decrease the amount of cash they need upfront to finance their home.A mortgage company will pay fees and closing costs on the borrower’s behalf (in the form of points) in exchange for a higher interest rate on the mortgage.  Negative points are also known as rebates, yield spread premiums, or no-cost mortgages.
Whenever you apply for a major loan or an insurance policy, your personal data will often go before an underwriter.Although you may never meet them, these specialists have a lot of control over whether you’re approved for a mortgage or life insurance policy.