Mortgage Definition
Amortization
The process of paying off a loan through regular payments over time. Each payment covers both principal (the original loan amount) and interest. In the early years of a mortgage, most of your payment goes to interest; over time, more goes to principal.
Why it matters
This term influences how sensitive your payment is to rate shifts and fee structure. Understanding it helps you compare lender quotes beyond the headline interest rate.
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Run your scenario
Apply this definition to your own numbers with our calculator suite.