Amortization
Definition
The repayment of principal from scheduled mortgage payments that exceed the interest due. The scheduled payment less the interest equals amortization. The loan balance declines by the amount of the scheduled payment, plus the amount of any extra payment. For a detailed explanation, see Mortgage Amortization: How Does It Work? If the payment is less than the interest due, the balance rises, which is negative amortization.
Related Terms Other terms related to 'Amortization' starting with the letter 'A' Approval, Amount financed, Auction site, Application, Annual Percentage Rate Browse by Letter » 1 4 A B C D E F G H I J L M N O P Q R S T U V W Y | 