Real Estate Slang: Amortization

The word amortization comes from the Middle English word amortisen which means "to kill."  In other words, amortization means to pay back or to literally kill your mortgage!  

In real estate, the word amortization is used to describe how a mortgage is paid back in scheduled principal and interest payments over time.  Bankers will often provide amortization schedules or tables to illustrate the loan being paid back showing the effect of each period payment on outstanding principal and interest.