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I’m not sure why amortization matter in the interim of a 5 year variable.
Isn’t the goal to pay down the principal at the end of the 5 year variable that was originally calculated?
For example, after 5 years, the principal is supposed to pay down $100k. The options at the end of the 5 year term will be (1) make a pre-payment to keep up with the original amortization schedule or (2) refinance to stretch because not enough principal paydown was made due to whatever reason. This is probably subject to certain LTV or income requalification.
Love to know if my thinking is flawed.
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