An amortized loan or mortgage is something where the loan principal is repaid throughout the lifetime of the entire loan, on the basis of a schedule of amortization.
Amortized mortgages/loans are specific debt types, where monthly payments are required. Each month, a part of the loan payment is used for repaying the principal amount, while some part of the same goes towards repaying the interest. To put it simply, these are known as installment loans, or loans with monthly installments or EMIs.
Amortized mortgages are common in real estate. The regular home loans taken for purchasing property, fall in this category. Borrowers get amortization schedules, while repaying a part of the principal amount every month, while some part of the EMI goes towards repayments. They can track the entire progress of repayment with the amortization schedule given by the financial institutions or lender.
