Mortgage amortization. Term. Payment schedule. Renewal and refinancing. These are all phrases you’ll hear over the lifetime of your mortgage, and they’re all connected. One frequent question people have about mortgages is “What does amortization mean?”
First, what exactly is amortization? The mortgage amortization period explained
So, what is the amortization period? It’s the total amount of time it takes to pay off a loan. The mortgage amortization period is the total number of years it will take to pay your mortgage in full. Typically, this is 20, 25 or 30 years. This seems like a very long time but as with any long-term goal, break it into smaller, more manageable steps.
In the case of your mortgage, these smaller steps are called terms, explained below.