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The schedule of paying off a loan through regular payments of principal and interest.
Amortization is how a loan is paid down over time with level payments. Early payments are mostly interest and only slowly chip at principal; later payments flip toward principal. Understanding this is why extra principal payments early in a mortgage save so much more interest than the same payments made later.
In the first years of a 30-year mortgage, most of each payment goes to interest, not principal.
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