Amortization
Amortization is the process of paying down a mortgage over time through scheduled monthly payments. Each payment includes a portion that goes toward interest and a portion that reduces the loan’s principal balance. Early in the loan, most of your payment goes to interest; later, more goes toward principal. Amortization helps borrowers understand how long it will take to pay off their home and how much interest they will pay over the life of the loan.
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Loan Term
