One Difference Between the Constant Amortizing Mortgage (CAM)and the Constant

question 14

True/False

One difference between the constant amortizing mortgage (CAM)and the constant payment mortgage (CPM)is the interest paid and loan amortization relationship.With a CAM,the loan amortization and interest paid are directly related and with the CPM the loan amortization and the interest paid are inversely related.

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Definitions:

Bilateral Mistake

A misunderstanding where both parties involved in a contract have an incorrect belief about a basic assumption on which the contract is based.

Mistake Of Value

An error made by one or both parties at the time of entering into a contract, regarding the value or worth of the subject matter of the contract.

Voidable

Refers to a contract that is valid and enforceable unless challenged and declared void by a party to the contract who is deemed to have been disadvantaged or defrauded.

Fraudulent Misrepresentation

The intentional provision of false statements or concealment of information to deceive or mislead another party.