Amortization

Amortization in Commercial Real Estate

Amortization in Commercial Real Estate

Amortization is the process of spreading a loan into payments that consist of both principal and interest over a set timeline, called an amortization schedule. While many commercial real estate loans are fully amortizing, not all are. For example, balloon loans are typically only partially amortizing, while interest-only loans usually have a non-amortizing interest only period, then a period that is either partially or fully amortizing.