Mortgage Glossary
Fully Amortized Loan
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A fully amortized loan is one whose scheduled payments completely pay off the principal and interest by the end of the term, leaving no balloon.
What Fully Amortized Loan means
Each payment covers interest plus enough principal so the balance reaches zero on the final due date. Standard 15- and 30-year fixed mortgages are fully amortized.
Florida example
A Florida buyer with a 30-year fully amortized loan makes 360 equal payments and owns the home free and clear at the end, unlike a balloon loan that would leave a large sum due early.
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