What is the Definition of Maximum Amortization?

Maximum Amortization

Noun

Definition: 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. For example, if a loan has a 25 year amortization schedule and a 10 year term, a balloon payment of the outstanding principal will be due at the end of the tenth year.

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