mortgages calling for the payment by the borrower of monthly (usually)
or quarterly or semi-annual payments, in equal amounts.
Included in the uniform monthly periodic payment will be the portion
allocated to repayment of the principal, the remainder being interest
on the remaining un-amortized principal amount for the period involved.
Besides use in AMORTIZATION LOANS on farm mortgages, the amortized
loan has become practically universal on urban real estate mortgage loans,
particularly as the result of popularization by the savings and loan associations.
high ratio of appraised value, amortized loans were also stimulated by
operations of the FEDERAL HOUSING ADMINISTRATION (FHA) under Title II,
Section 203 (b) of the National Housing Act, 1934, as amended, in providing
insurance of mortgages on one-four-family homes and by guarantee by the
Veterans Administration of a portion of home mortgage loans to veterans
under the Servicemen's Readjustment Act of 1944 (GI Bill of Rights).
LOANS to business firms are amortized loans.
Pursuant to the term loan agreement, periodic payments provide
for amortization on principal as well as current interest, the amortization
schedule being fitted to projected cash flow from operations of the borrower