what does amortization mean in a mortgage
The process of paying off a loan through specifically structured periodic payments is known as amortization. This type of loan is different from other loans due to the way the amount and the structure of each payment is determined. Mortgage payments are a common form of amortized loans and, interestingly enough, both the terms mortgage and amortization find their meaning in the same root word: mort.. This term means to deaden or kill, as in to kill off or eliminate the loan a bit at a time, via regular payments.