Gradual debt reduction. Normally, the reduction is made according to a predetermined schedule for installment payments. HUD-FHA and VA regulations require that the insured or guaranteed mortgages provide for amortization in equal monthly payments over the term of the loan, except that the payments of the early years of a Graduated Payment Mortgage may change from year to year, and those of an Adjustable Rate Mortgage may change from time to time, subject to certain restrictions.
« Back to Glossary IndexAmortization
« Back to Glossary Index