This is absolutely legal under international banking rules.
Some procedures must be respected and you have to know what to do and how.
Next month, since you owe less money,you pay less interest, which means more of your money goes to the principal.
This process continues through the life of the mortgage until you finally make a last payment that contains almost no interest and completely pays off your balance.
Mortgages were originally interest-only loans that needed to be refinanced every five or so years.
After the Great Depression, self-liquidating loans became more prevalent due to support from the Federal Housing Administration and the growth of the savings-and-loan industry.
In such scenarios, the facility of export packing credit supports the exporter’s supply chain and provides them funds to bridge the gap till the final payment.
Mortgage maturity refers to the date at which all agreed payments, as specified in your original mortgage paperwork, have been paid. Depending on the length of your loan term, and the type of amortization on your mortgage, you may or may not have completely paid off the mortgage at the date of maturity.
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co.
Bonds that are paid for from the earnings of a municipally owned enterprise, usually a utility.
Packing credit is the most commonly used trade finance tool by an exporter.
Packing credit or pre-shipment finance is very important to small and medium enterprises for their financing needs.