Amortized Mortgage Law and Legal Definition

Amortized mortgage is a mortgage loan in which the principal and the interest is payable in monthly or periodic installments during the term of the loan. It has to be paid within specific period and the monthly payments reduce the loan's principal and cover interest as it falls due. When the term completes, these regular payments would have completely repaid the loan. Amortized mortgage is also known as self-liquidating mortgage.