A Mortgage Loan Is an Example of an Amortizing Loan

question 52

True/False

A mortgage loan is an example of an amortizing loan."Amortizing" means that part of the monthly payment is used to pay interest on the loan and part is used to reduce the amount of the loan.

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Definitions:

Consideration

The value promised, given, or performed that motivates parties to enter into a contract, being essential for its validity.

Indorser

A person who endorses a negotiable instrument.

Rights

Entitlements or permissions, either granted by law or moral principles, allowing individuals to perform certain actions or to be treated in specific ways.

Holder in Due Course

A legal term describing a person who has acquired a negotiable instrument in good faith for value and without notice of certain defects.