The loan smoothed or loan repayment levels, the guide!
Adjusted monthly payments of a smoothed loan
The repayment loan consists of voluntarily reducing the amortization portion of the monthly installments of the new loan over a fixed period of time at the beginning of the loan to end the repayment of one or more loans. The smoothed loan can also be used by first-time homebuyers who finance their homes and take out a second loan, such as a work loan or a housing equity loan. But it is most often used during the contraction of a home loan coupled with assisted loans (zero interest loan,).
The monthly payment of the mortgage remains the same throughout the duration of the credit even if, as the years go by, some loans will come to maturity. This allows to have several credits, different durations and at different rates in one monthly payment. The monthly payment includes, at the beginning of the loan, a larger share of repayment of the shortest loans.
Amortization of the capital of a smoothed loan
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Once the loans are repaid, the monthly payments of the smoothed loan are revalued upwards to allow the total amortization of the capital at the end of the loan.
A credit commits you and must be repaid, check your repayment capabilities before you commit.