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13:51 Nov 29, 2009 |
Italian to English translations [PRO] Bus/Financial - Finance (general) / power of attorney re. mortgage loan | |||||||
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| Selected response from: Erika Nagy, Esq. Local time: 00:38 | ||||||
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Summary of answers provided | ||||
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3 | see below |
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3 | interest only mortgage |
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Discussion entries: 1 | |
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see below Explanation: adjustable-rate mortgages with repayment of the capital = mutuo al tasso variabile con rimborso libero del capitale -------------------------------------------------- Note added at 46 mins (2009-11-29 14:38:18 GMT) -------------------------------------------------- If you buy property, you can take out a variable rate mortgage (also called adjustable rate mortgage), i.e., the interest rate is regularly adjusted based on or pegged to a certain market index - e.g. Prime Rate, LIBOR. The repayment of the mortgage will have two components: the repayment of the capital borrowed and the interest on the loan. The amortization is characterised by a constant repayment of the capital borrowed. In the case of a direct amortization, the amount of the interest (and the debt of the mortgage) is reduced every year. One of the advantages is that you can potentially benefit from falls in general level of interest rates on the capital markets (but there is a higher risk for the borrower if interest rates rise, of course). Adjustable rates are typically used when fixed rate funding is difficult to get or when it is too expensive. |
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interest only mortgage Explanation: This is a term I have heard used in the sector. |
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