Dictionary

amortization

The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

Last Updated: December 30th, 2024 at 12:09 PM
Kay Augustine Facebook Kay Augustine Twitter Kay Augustine LinkedIn
Top