Mortgage amortization is defined as the process that you pay off
a mortgage or a loan over time through regular payments.
Generally speaking, the longer your amortization is, the lower
your regular mortgage payments will be. However, the total
amount of interest you should pay for your loan will be
increased if you are locked in a longer term mortgage. An
amortization is made up of lots of mortgage terms, such as, ten-
year, twenty-year, thirty-year or only one month. As long as you
take out a mortgage, it is accompanied by the amortization. The
bank or the mortgage company will talk with you and determine
the amounts of the periodic payments over the life of the loan.
There are a variety of methods in which to arrive at an
amortization schedule. 2. Declining balance 3. Increasing
balance Amortization accounting is really complicated. Mortgage
amortization is the distribution of a loan repayment into
multiple cash flow installments and the borrower should make
monthly payments which are decided by the amortiza