Amortization
Author: Terri Ewing | Date: September 19, 2008 | Filed In: Glossary
Amortization Defined
Amortization is the repayment of a mortgage with scheduled payments that include principal and interest. At the end of the scheduled term when all the payments have been made, the mortgage is paid back in full including the interest.
The opposite of an amortized mortgage is an interest only mortgage. That payment only includes the interest due while the amortized mortgage payment includes the interest due plus your principal payment.
Amortization can’t be calculated on a regular calculator. It has to be a mortgage calculator.
That reminds me…use our free mortgage calculators for you to use.
Author: Terri Ewing
Previous in Category:« Interest Rate
Next in Category: Jumbo Mortgage »
Recommended Reading
Related Articles
Reader Comments
How To Use Our Comment Section:
1. To comment on the article or post: Simply cursor down to the bottom and add your comment in the box, hit "Save". After moderation, your comment will appear next chronologically.
2. To comment on a comment (not on the post) or what is called a "nested" comment: Remember the name of the commentor, hit the "Reply" link in the comment you'd like to reply to. You're taken to the bottom where you can confirm the auto-import of the comment name or chose it again from the "Reply to" drop down list. Then add your comment to the box, hit save. After moderation, your comment will appear "nested" under the selected comment.
