# Amortization

*Borrowing & Credit — Finicade finance glossary*

Paying off a loan in equal instalments that each cover the interest due plus a slice of principal. Early payments are mostly interest, later ones mostly principal — so the balance falls slowly, then quickly.

**Related terms:** [Mortgage](https://finicade.com/glossary/mortgage), [Principal](https://finicade.com/glossary/principal), [Interest Rate](https://finicade.com/glossary/interest-rate)

Source: https://finicade.com/glossary/amortization