Real Estate Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Definitions of Amortization

  • Paying off (amortized) a loan over time. A certain portion of the loan payment goes to interest with the remainder going to principal. As the prinicpal decreases more and more of the payment goes to pay the pricipal and less to the interest. The loan is in the process of being amortized (paid off). Once all payments have been made the loan is fully amortized. This definition of Amortization contributed by Wayne Long.
Alternate spellings of Amortization: amortisation

Back to Glossary

Related Terms

Loan