Remaining amortization

failbetter

Senior Member
Chinese - Mandarin
Hello,

I'm translating the user interface of a mobile app for a Canadian bank. They are all just strings. Here is the text in question, with context:

---------------------
Original loan amount
Term of loan
Variable interest rate
Accrued interest
Annual prepayment limit
Current term
Payment frequency
Remaining amortization
------------------

The strings above are all about loans. I wanted to know what "Remaining amortization" means.

According to this bank, "Remaining Amortization Period" means "The time period remaining (from a specific point in time) until your mortgage loan is paid in full assuming the same interest rate and payment amount." But I'm not sure that "Remaining amortization" means the same thing with "Remaining Amortization Period". Might it mean an amount?

Thanks!
 
  • EStjarn

    Senior Member
    Spanish
    Here's a definition of "remaining amortization" from CFF Bank, a Canadian owned Schedule I bank:
    The time over which all regular payments would pay off the mortgage.
    To display the definition, hover over the relevant information symbol on this page.
     

    failbetter

    Senior Member
    Chinese - Mandarin
    Here's a definition of "remaining amortization" from CFF Bank, a Canadian owned Schedule I bank:


    To display the definition, hover over the relevant information symbol on this page.
    Thank you. But I don't understand the explanation given on that page. How is it different from the "remaining term of the loan"? According to that site, "remaining term of the loan" means:
    The Length of the current Mortgage Agreement (Typically 1-5 years or 12-60 months).
     

    Kirill V.

    Senior Member
    Russian
    Term
    The length of the current mortgage agreement. A mortgage may be amortized over a long period (such as 30 years) with a shorter term (six months to five years or more). After the term expires, the balance of the principal then owing on the mortgage can be repaid or a new mortgage agreement can be entered into at the then current interest rates.
     

    EStjarn

    Senior Member
    Spanish
    How is it different from the "remaining term of the loan"?
    I think kayve puts it very well, but here's my rendering regardless.

    A term, here, is basically a period of time for which a particular interest rate has been agreed. The interest rate takes into account the present and expected inflation, which will fluctuate over time.

    You can understand that it would not be prudent to have terms that stretched over very long periods since no one can say with certainty how the inflation level will change for example, how much a Canadian dollar ten years from now will be worth compared to a Canadian dollar today.

    In that sense, a term is not necessarily a period for paying back a loan in full. In the case of a mortgage loan, which is typically scheduled to amortize over a period of 30 years, there will have been several terms before the loan has been paid off.
     

    Myridon

    Senior Member
    English - US
    An amortization shows the amount of principal and the amount of interest separately. My guess would be that "Remaining amortization" would be one (or both) of those amounts, likely the principal. The amount of money that is is still owed to the bank. The payoff.
     

    failbetter

    Senior Member
    Chinese - Mandarin
    Term
    The length of the current mortgage agreement. A mortgage may be amortized over a long period (such as 30 years) with a shorter term (six months to five years or more). After the term expires, the balance of the principal then owing on the mortgage can be repaid or a new mortgage agreement can be entered into at the then current interest rates.
    I see. Thank you!
     

    failbetter

    Senior Member
    Chinese - Mandarin
    I think kayve puts it very well, but here's my rendering regardless.

    A term, here, is basically a period of time for which a particular interest rate has been agreed. The interest rate takes into account the present and expected inflation, which will fluctuate over time.

    You can understand that it would not be prudent to have terms that stretched over very long periods since no one can say with certainty how the inflation level will change for example, how much a Canadian dollar ten years from now will be worth compared to a Canadian dollar today.

    In that sense, a term is not necessarily a period for paying back a loan in full. In the case of a mortgage loan, which is typically scheduled to amortize over a period of 30 years, there will have been several terms before the loan has been paid off.
    Good explanation. Thank you!
     

    failbetter

    Senior Member
    Chinese - Mandarin
    An amortization shows the amount of principal and the amount of interest separately. My guess would be that "Remaining amortization" would be one (or both) of those amounts, likely the principal. The amount of money that is is still owed to the bank. The payoff.
    Thanks. I think kayve and EStjarn are right. Here remaining amortization means a period.
     

    Thomas Tompion

    Senior Member
    English - England
    Thanks. I think kayve and EStjarn are right. Here remaining amortization means a period.
    That seems unlikely to me, granted that you already have 'current term' in the list.

    Obviously the amortisation period would be different for different levels of regular repayments.

    I think your original guess, that remaining amortisation means the sum remaining to be repaid, is very likely correct.
     

    failbetter

    Senior Member
    Chinese - Mandarin
    That seems unlikely to me, granted that you already have 'current term' in the list.

    Obviously the amortisation period would be different for different levels of regular repayments.

    I think your original guess, that remaining amortisation means the sum remaining to be repaid, is very likely correct.
    It is likely. Please refer to the link given by EStjarn. There the definitions of remaining amortization and remaining term are both given.
     
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