Topic 20 - Mortgage repayment methods Flashcards
1
Q
Annual rest
A
Interest calculated annually at year start
payments credited as paid but deducted from balance at years end
Most interest paid over the term; slowest debt reduction
2
Q
Monthly rest
A
Interest calculated at month start
Payments credited and deducted from the balance monthly
less interest over the term
3
Q
Daily rest
A
Interest calculated daily
Payments credited and deducted from the balance immediately
Potentially least interest over the term and quickest debt reduction
