step 1. What is Amortization?
Amortization is the process of spreading out a loan into a series of fixed payments over a specified period. It allows borrowers to make regular payments towards their principal and interest, reducing the amount owed over time. Amortization is an essential component of mortgages and other types of loans, and understanding how it works can help borrowers make informed conclusion about their economic obligations.
Among the many benefits associated with amortization is that it lets consumers to pay off their financing over time, in place of for the a lump sum payment. (more…)