Amortization means repaying part of the mortgage regularly and within a predefined period of time. There are two ways to do this: direct and indirect amortization.
In the case of direct amortization of a second mortgage, the debt is paid off in installments, which reduces the amount of the mortgage as well as the interest paid. However, less mortgage interest can be offset against tax. Indirect amortization is the process of depositing money into a retirement savings account, which offers tax advantages.