The process of paying an interest-bearing liability by the gradual reduction through a series of installments, as opposed to one lump-sum payment.

A mortgage on your home or the dealership loan for your car is amortized.

The longer the period of the loan then the more interest you will pay.

When you have a loan on something that you insure then you are required to inform your broker or agent. That person's interest needs to be shown on the policy as either a lienholder or mortgage. If there is a claim for a total loss then your name and their name is shown.