Amortization is the process of spreading out the payback of a loan into a series of fixed payments, over a fixed period of time. Upon receipt of the final payment in the payment schedule, the loan is considered “satisfied”, or “paid off”.

Whenever possible, request an Amortization Table to evaluate different loan options. Prior to selecting a plan, clarify if the rates in the amortization table include the additional fees related to the loan, such as: administrative fees, origination fees, preparation fees, processing fees…etc.