Just call us Bond. Amortized bond.
Over 700 finance terms, Shmooped to perfection.
So you need dough—but you don't need it today. You need it in 6 months when your cabin by the lake will be done and you convert your very expensive building loan into a normal mortgage. Well, you can go to the bank and, for a small(ish) fee, get a commitment letter which stipulates that, assuming that nothing material changes between now and then, you will in fact get a loan for $152,000 at 5% fixed interest for 30 years.