Finance
Amortization
A concise definition for the California Real Estate Exam study guide.
Definition
Gradual payoff of a loan through regular payments of principal and interest. Early payments are mostly interest; later payments are mostly principal.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 5: Finance, Mortgages & Loan Types →