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Mortgage glossary
Amortization
Amortization is the gradual repayment of a loan through scheduled payments. Each payment may include principal and interest. Early in many loans, a larger part of the payment goes to interest.
In plain language
This term may appear in conversations, forms, or documents during the mortgage process. If something important changes in your situation, ask how it may affect your case before making a decision.
This explanation is general and educational. It is not personalized advice, a loan offer, or a promise of approval.