Fee
repayments
The fee is the amount
that is paid to the financial institution, usually a monthly basis, in order to
repay the capital borrowed. It consists of two parts: one for interest and
amortization of the other capital. The depreciation rate is, therefore,
the amount of capital paid to the financial institution to reduce the debt
overhang.
Depending on the type of
mortgage repayment chosen for each, vary the portion of the fee consisting of
interest and the repayment of capital.
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