Homebuyer Lingo Explained- Amortization

May 29, 2025

Amortization means slowly paying back a big loan, like a house loan, over time in small pieces each month. Part of your payment goes to the loan itself and part goes to interest.
“Amortization” is a word you’ll hear thrown around a lot when buying a house — but what does it actually mean? We’re breaking it down, plain and simple.