loan amortization

Definition

The gradual repayment of a debt over a specific period of time. Payments are usually due on a recurring and cyclical basis (e.g., monthly), and include interest on top of principal.

Use loan amortization in a sentence

Many homeowners find their loan amortization to be a daunting and confusing responsibility, they are unsure how much of their monthly payment is going toward the principal of the loan and how much is going toward the interest, which makes it difficult to determine how they can pay off this debt faster.

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The loan company provided its customers with a detailed loan amortization sheet so that the customers would know exactly when they would make their last payment and how much of their monthly payment was being applied to the interest and principal of the loan.

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When deciding on a Loan Amortization schedule, tax benefits, inventory cost, and projected income must be taken into account, or the buyer may end up defaulting on the loan or missing important tax advantages.

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loan loan amortization schedule