Amortization Term

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • amount
  • sum
  • pay-off
  • settlement
  • remuneration
  • repayment

Definition of Amortization Term

  1. The period of time that is required and agreed upon to repay (amortize) an entire mortgage loan.

Related Terms and Acronyms

  • Amortization Schedule Bank,
    • A detailed table showing the amortization of a loan which includes the beginning principal amount, period payments, the interest portion of each payment, the principal reduction portion each payment, and the ending balance. The Canadian Equity Group has developed a mortgage rate calculator which will generate a perfect example of an amortization schedule.
  • Term Bank,
    • The length of time you commit to repay a lender or bank at an agreed upon interest rate and payment schedule. The interest rate usually remains constant during this term unless the commitment states otherwise. For example, a five year fixed rate mortgage has a term of five years.
  • Loan Term Bank,
    • The period specified in the promissory note for a borrower to pay a loan, such as a mortgage. Most conventional mortgages have a loan term of 5 or 10 years.
  • Amortization Period Bank,
    • The amount of time it will take to pay off a mortgage by making routine payments.
  • Amortization Bank,
    • Amortization refers to the process of gradually paying down the principal of a loan. Each payment toward the principal reduces your loan by that amount. This is different than an interest-only loan payment where the principal balance is never reduced. Amortization for a mortgage loan in Canada is normally 25 years, but can be as few as 5 years.
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