What is the Definition of Amortization?



Definition: Identifies the loan amortization that is being quoted (in years); the period of time over which principal and interest payments are scheduled. For example, a loan with a 10-year term and a 25-year amortization will have a balloon payment at the end of 10 years. Also, the maximum number of periodic installments (expressed in years) over which repayment of a mortgage debt is calculated; a portion of each payment consists of a blend of interest and amortization of principal.

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  • Making an extra payment each month can lower your amortization.

Pages that Mention Amortization

Freddie Mac (FHLMC) Student Housing Loans

The Freddie Mac student housing loans program provides flexible financing including both 30-year amortization and the potential for full-term interest-only.

FHA Apartment Loan Application Process

The Federal Housing Administration (FHA) Division of the US Department of Housing and Urban Development (HUD) offers government-insured loans for multifamily properties with experienced (and patient! ) investor/owners. It also offers loans for healthcare facilities (i. e. hospitals and residential care facilities) as well as special needs facilities for the elderly or disabled. Although FHA apartment loans have longer closing times and higher fees than any other mainstream multifamily product, this is a strong go-to product for long-term investors with large loan requests because of the long fixed term and amortization, non-recourse structure, low interest rates, and high leverage point.

Commercial Mortgage Calculator

Calculate your monthly payment using our amortization calculator. We provide an array of calculators to help you calculate mortgage payments.

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