What Is A Mortgage Amortization?

The mortgage amortization is the time over which all regular payments would pay off the mortgage in full.  The number of payments used to calculate the actual mortgage payment.  This determines the principal and interest portion of each payment.  The interest portion is higher to start with and slowly decreases over time, although the payment (on a fixed term) remains the same.

Amortizations can range from less than 5 years to as much as 35 to 40 years.

However, your options will depend on the following:

  • Less than 20% down payment the maximum amortization is 25 years (as per default insurer guidelines)
  • More than 20% down payment then up to 35 years but depends on the lender and you qualifying


  • Some lenders do not offer longer amortizations beyond 25 years
  • Some lenders have a minimum amortization they offer

So how do you select the right one for you?

  • Determine which amortization you actually qualify for
  • Adjust your amortization up or down so that the monthly payment is within your personal budget
  • The shorter the amortization, the less interest you will pay

Not sure how many years your have on you mortgage? Let me show you! I can be reached at 519-760-4391 or melissa@melissabendo.com