The loan will re-amortize each time the interest adjusts. This re-amortization ensures the loan balance is zero at the end of the term, even if the interest rate increases along the way. Amortization Payment Schedule Example So, you know what a fully amortizing loan means. But how does a...
A fully amortizing payment is a periodic loan payment made according to a schedule that ensures it will be paid off by the end of the loan's set term.