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Rating:A repayment mortgage is a term generally used in the UK to describe a mortgage in which the monthly repayments consist of repaying the capital amount borrowed as well as the accrued interest, so that the amount borrowed decreases throughout the term and by the end of the loan term has been fully repaid.
read moreMortgage Life Insurance is a form of insurance specifically designed to protect a repayment mortgage. If the were to die while the mortgage life insurance was in force, the would pay out a capital sum that will be just sufficient to repay the outstanding mortgage. Mortgage life insurance is supposed to protect the 's ability to repay the mortgage for the lifetime of the mortgage.
read moreAnalogous to continuous compounding, a continuous annuity is an ordinary annuity in which the payment interval is narrowed indefinitely. A continuous repayment mortgage is a mortgage loan paid by means of a continuous annuity. Mortgages are generally settled over a period of years by a series of fixed regular payments commonly referred to as an annuity. Each payment accumulates compound interest from time of deposit to the end of the mortgage timespan at which point the sum of the payments with their accumulated interest equals the value of the loan with interest compounded over the entire timespan.
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