Calculator
The best farm loan calculator we've seen online is the Farmer Mac Calculator.
Definitions of Terms Used in Calculator
- Amortization
- The process of paying the principal and interest on a loan through regularly scheduled installments.
- Principal
- The amount of money that the borrower owes on a mortgage.
- Interest
- The fee borrowers pay to obtain a loan. It is calculated based on a percentage of the total loan.
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Interest rate
- The sum, expressed as a percentage, charged for a loan.
- Loan Amount
- Original amount of money being borrowed.
- Loan Term
- The amount of a time set by the lender for a buyer to pay a mortgage.
- Amortization Term
- The amount of time over which the loan is amortized. If it is amortized over more years than the Loan Term, then there will be a balloon payment at the end of the Loan Term.
- Balloon loan
- A mortgage in which monthly installments are not large enough to repay the loan by the end of the term. As a result, the final payment due is the lump sum of the remaining principal.
- Payment Frequency
- The frequency with which payments are made on a loan.
- Amortization Schedules/Tables
- Mathematical tables that lenders use to calculate a borrower's monthly payment.