Amortization

Mortgages
Written By David Pipe

Amortization is the process of gradually paying off a debt over time through scheduled, periodic payments. These payments are typically made in equal amounts and consist of both principal (the amount borrowed) and interest.

 

In the context of a loan, like a mortgage, amortization refers to the breakdown of payments over the life of the loan, where early payments are primarily used to pay interest, and later payments are applied more to the principal.

 

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David Pipe

David Pipe helps business owners, investors, and first-time homebuyers build and protect family wealth with creative financing and tax-efficient life insurance solutions. He is an award-winning mortgage agent and life insurance agent in Ontario. David believes education in personal finance and seeking great advice is the best way to reach our financial goals, and he is focused on sharing his knowledge with others. He lives in Guelph, Ontario with his wife Kate Pipe and their triplets (and english bulldog Myrtle).

https://www.wealthtrack.ca/about#about-david-pipe
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