What is an Interim Amortization? How is it different from a Final Amortization?
• As part of your loan closing documents an amortization date is established. If you have not drawn all your loan funds and proceeded through all the closeout steps by this date, your loan will be Interim Amortized. This means you will begin principal and interest repayment. The monthly payment amount is calculated on the full loan amount for the amortization term. This results in a monthly payment amount. However, when your payment is posted to your account the interest is calculated on the outstanding principal balance to date and not the full amount of the Loan and this amount is subtracted from the monthly payment amount, the balance of the monthly payment will be applied against the outstanding principal balance. You can continue to submit payment requests after Interim Amortization; however, you will not be allowed to capitalize any additional interest following Interim Amortization. When you have drawn all your loan funds, you must notified PENNVEST that you have submitted your
