Amortization

Amortization – To gradually pay down the principle balance of a loan over time.

  • Example: A lender can lend money in different ways. If a borrower does not want to have to pay the loan back as one lump sum, the loan amount will be amortized over the length of the loan. This means that each month part of the monthly payment will go towards paying back the loan amount. The other part will be interest.
Print Friendly

Facebook Comments

comments

Powered by Facebook Comments