• A fully amortizing payment is a periodic loan payment that is made in accordance with a schedule that ensures its repayment by the end of the loan term.

  • Loans on which fully amortizing payments are made are known as self-absorbing loans.
  • Traditional long-term, fixed-rate mortgages usually have fully amortizing payments.
  • Interest-only payments, typical of some adjustable-rate mortgages, are the opposite of fully amortizing payments.