Definition of 'Amortized Loan'That loanwith scheduled periodic payments of both principal and interest. This is opposed to loans with interest-only payment features, balloon payment features and even negatively amortizing payment features.
Investopedia explains 'Amortized Loan'
Debtors that like amortized financial loans are not as likely to see "payment shock" than debtors that like financial loans which aren't fully amortized. Obligations on financial loans that aren't initially fully amortized must sooner or later become amortized within the remaining term from the loan to be able to pay back the outstanding principal balance. The shorter the rest of the term, the bigger the rise needed within the periodic obligations to amortize the borrowed funds within the remaining term.
Investopedia explains 'Amortized Loan'
Debtors that like amortized financial loans are not as likely to see "payment shock" than debtors that like financial loans which aren't fully amortized. Obligations on financial loans that aren't initially fully amortized must sooner or later become amortized within the remaining term from the loan to be able to pay back the outstanding principal balance. The shorter the rest of the term, the bigger the rise needed within the periodic obligations to amortize the borrowed funds within the remaining term.
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