D / I = R

D = Debt

I = Income read more

Amortization is a term that is commonly used in describing financial loans.

There are other things regarding repayments like insurance that uses amortization. But it is most often used when describing mortgages.

Amortization refers to scheduled repayments where the amount in excess of interest due is used to repay the loan principal. read more

A balloon mortgage is a loan that is not fully amortizing but instead demands full payment of the balance due on maturity.

The maturity is shorter than the term of mortgage.

Because of the large lump sum final payment requirement at the end of the loan, it is thus called a balloon payment. Not because the loans are issued by clowns. read more