Alternative mortgage instrument (AMI),
Definition of Alternative mortgage instrument (AMI):
AMIs would be considered a type of nonconforming loan. A balloon mortgage, for example, is a type of AMI that requires a borrower to fulfill repayment in a lump sum.
Mortgage agreement (such as adjustable rate mortgage) that does not specify a fixed interest rate or a fixed number of fixed amount installments.
An alternative mortgage instrument (AMI) is any residential mortgage loan that deviates from standard mortgage practices. For instance, it may be a mortgage that is not fixed-rate, fully amortizing, has monthly or periodic payments, or standard terms of repayment. Sometimes, an AMI is a loan with real property as collateral with the money being used for some other purpose than purchasing the property.
How to use Alternative mortgage instrument (AMI) in a sentence?
- Common examples include interest-rate only, balloon, or ARM mortgages.
- Examples may include alternative repayment terms, variable rates, or non-amortizing interest.
- An alternative mortgage instrument (AMI) refers to mortgages that contain non-standard terms.
Meaning of Alternative mortgage instrument (AMI) & Alternative mortgage instrument (AMI) Definition