Amortization is the process of paying off a loan a little at a time through regular payments, until the balance reaches zero.
Amortization is the gradual repayment of a loan's principal and interest over a set period through scheduled payments, where early payments are weighted toward interest and later payments toward principal.
How a loan is amortized affects your payment size and how much total interest you pay. A longer amortization lowers payments but usually raises total interest.
A farmland loan amortized over 20 years has the same payment each period, but the share going to principal grows as the balance shrinks.
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