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What is amortization?
Amortization is the process of paying off a debt with a known repayment term in regular installments over time. Mortgages, with fixed repayment terms of up to 30 years (sometimes more) are fully-amortizing loans, even if they have adjustable rates. Revolving loans (such as those for credit cards) don't have a fixed repayment term, are considered are open-ended debt and so don't actually amortize, even though they may be paid off over time.