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Amortization
Updated
January 19, 2023
The most commonly used definition of amortization is that which refers to the period of time a borrower will need in order to pay the regular principal amount along with the expected interest. In the event of a mortgage loan, the amortization schedule is often set by the lender. The purpose of an amortization schedule is to reduce the current or outstanding balance of a mortgage loan through installment payments.
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