Borrow once and repay frequently
Image by Daniel Fishel © The Balance 2019
By having an installment loan, you borrow money once (upfront) and repay in accordance with a routine. Mortgages and automobile financing are typical installment loans. Your re re payment is determined making use of that loan balance, mortgage loan, therefore the time you need to repay the mortgage. These loans could be short-term loans or long-lasting loans, such as for example 30-year mortgages.