Summer self liquidating loan aspx
The lower your loan-per-unit, the better your credit rating.
So use this (temporary) market dip to lock in not only a great rate, but also some debt reduction.
Of all the words in the financial lexicon, amortization may be the most difficult to pronounce.
Its syllables are regularly rearranged into a wondrous array of stammered approximations. Quite simply, amortization is the repayment of some, or all, of the amount borrowed in a gradual and systematic way over the life of the loan.
To be even more competitive, a few lenders have resurrected the standing or interest only loan, a product rarely seen since the free-wheeling '80s.
The monthly payments on standing loans are substantially lower because they include just interest on the outstanding loan balance and no amount to repay the principal.
Any relief from a maintenance reduction will only be temporary and relatively minor.
Anything that reduces risk should be reflected in a lower interest rate or other concessions.
In this case, monthly payments would consist of interest on the outstanding balance computed at the stated loan rate plus a small portion of the principal.
The amount of principal in each payment grows over the life of the loan and is calculated to repay the entire amount borrowed if the loan were in place for the full 25 years.
Having lower debt will make your co-op relatively more attractive.
So, learn from the past and prepare for the future by amortizing.