Mortgages Analyzed
Mortgages Analyzed
Mortgages Analyzed
 
Amortization Period

What is Amortization Period?

Definition
The amortization period is the time period during which the entire principal amount will be paid off.
What It Means
Amortization period is the time period during which the principal and interest portion of loan will be fully paid. If the amortization period is the same as the loan term, then the loan will be paid off at the end of the loan term. The loan is then called a fully amortizing loan. In the case of balloon loans, the amortization period is longer than the loan term then the last payment will be a balloon payment.
Category
Finance
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Related Terms

  • Amortization: Amortization is the process of establishing equal periodic payments such that the payments will pay off the entire principal and interest by the end o... Read More
  • Loan Term: Loan term is the time period within which the borrower has to repay the loan amount and interest and satisfy all the terms of the agreement.... Read More
  • Fully Amortized Loan: A Fully Amortized Loan is designed to pay off the principal and interest during the life of the loan through fixed periodic payments.... Read More
  • Negative Amortization Loan: A mortgage loan that allows the borrower to make periodic payments that are less than the interest accrued in that period, which causes the principal ... Read More
  • Reverse Mortgage: Reverse Mortgage Loan is a negative amortization loan that is designed to allow the borrower to utilize the equity in the home and convert into cash f... Read More
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