Amortization
The loan payment consists
of a portion which will be applied to pay the accruing interest on a loan,
with the remainder being applied to the principal. Over time, the interest
portion decreases as the loan balance decreases, and the amount applied to
principal increases so that the loan is paid off (amortized) in the specified
time.
Real Estate Glossary:
401K - E |
F - M |
N - V
