What is the difference when we say a Home Equity Loan (HEL) is fully amortized at maturity and a Manufactured House Loan is fully amortized over life of loan? From what I feel is that, the HEL is a bullet payment on the maturity of the loan (if fully amortized at maturity?) And the MHL is payments distributed over life of the loan… Help!
The both mean the same thing. Both HEL and MHL consist of net interest, regularly scheduled payments and prepayments.
Thanks. Got confused by the different sentences. Basically then paying the whole principal only at maturity rather than over the life of the loan would be a non-amortizing loan? (less of a balloon loan but just for comparisons where a balloon loan does not fully amortize at maturity, and requires a balloon payment at the end of the term equivalent to the remaining principal of the loan left) OR like a credit card receivable which is a revolving credit
Yes both of the examples given are of a non-amortizing loan.
bit of advice mate, don’t get too lost in the text of it all, you need to apply an amount of common sense to it a HEL is just going to be a normal mortgage so principal is paid back as well as interest over the life