A mortgage loan is different than any other loan you will get in your lifetime.

Most mortgage loans are negotiated for a set time period of less than 10 years. They are negotiated for a single interest rate which will remain in place for the entire term of the mortgage loan. (The only exception to this would be a line of credit, in most cases. The interest rate on a line of credit may be changed over time.) Generally, you can pay off a loan in full at any time, although you may pay a penalty depending on the mortgage lender.

Most of us are familiar with this kind of loan through the purchase of our vehicles.With mortgages, the length of the mortgage, the mortgage interest rate are negotiated separately.

In this case:

1.The 'amortization' of the mortgage is the length of time it will take to pay off the mortgage

2.The term refers to the time period covered by your current mortgage contract. This is normally the length of time that you are 'locked in' to a particular interest rate and payment amount.

3.The interest rate can either be fixed or variable.

Thanks for the info manu, I had never ehard the term "amortization" before, a quick check in the dictionary shows: "The gradual elimination of liabilities".

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Hi,
I have few information on what paperwork needed to get pre-approved for a mortage loan.

1. 2 months paycheck stubs from you and your spouse (if applicable)

2. 2 months bank statements, all pages from all accounts.

3. insurance agent data (contact name & phone) borrower's tend to go with agent holding auto insurance for their homeowners policy. You also my want to call and get some quotes but, be careful you don't want too many inquiries on your credit prior to closing your loan.

4. W-2's covering previous 2 years.