Definition: A loan repayment arrangement with equal scheduled principal-and-interest payments. As an amortizing loan is paid down, the share applied to principal generally increases while the interest share decreases.
Example
A fixed-rate amortizing mortgage has the same scheduled principal-and-interest payment each month.
Keep the distinction clear
The total monthly housing bill can still change when taxes, insurance, or other escrowed charges change. Level payments do not automatically mean every loan is fully amortized.
Related terms
Amortized Mortgage · Annual Debt Service · Balloon Payment
Keep studying
Mortgage Payment Factors: Calculate Principal and Interest
References: CFPB: mortgage key terms
Pronunciation (US): LEV-ul PAY-ment PLAN (capitals show stress)
Pronunciation reference: Merriam-Webster
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