| A mortgage where throughout the term, regular payments (usually monthly) are made partly to repay interest on the capital and partly to repay the capital itself (the amount of the loan). Initially the largest proportion of the repayments are used to pay interest since the capital amount outstanding is at its highest value. As the years proceed, more and more of the monthly repayments will be applied to reducing the capital until towards the end of the term the large proportion will be paying off capital and a small proportion paying interest.
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