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Personal Finances / Buying or Selling a Home


Subject:  Re: Amortization: 30YR vs ARM Date:  2/6/2014  1:21 PM
Author:  Dwdonhoff Number:  126794 of 128075

Hi Crack'd,

Why does an ARM loan product initially amortize quicker than a 30YR fixed? Both loan products have a term of 30YRs and the amortization schedule will allow both loans to be paid to $0 after 30YRs. Yet the ARM loan will have it's balance reduce quicker than a 30YR fixed.