Amortization
The process of paying down a loan balance through scheduled monthly payments. Each payment covers interest first; the remainder reduces principal.
| Audience | Name |
|---|---|
| Engineering (code) | — |
| Design (UI label) | — |
| Borrower-facing | paying down your loan a little more with every payment |
| Do not use | — |
Sources
- Clarity Engine Glossary — Amortization
Related
P&I (Principal & Interest), Remaining Loan Term, Current Monthly Payment