Site icon Key Commercial Capital

fully amortized loan

Fully amortizing payment refers to a periodic loan payment, where if the borrower makes payments according to the loan’s amortization schedule, the loan is fully paid-off by the end of its set term.

If the loan is a fixed-rate loan, each fully amortizing payment is an equal dollar amount. If the loan is an adjustable-rate loan, the fully amortizing payment changes as the interest rate on the loan changes.

SBA loans are generally fully amortized and have no pre-payment penalty.

Exit mobile version