Accelerated Amortization

Paying Principal amounts in excess of the minimum required by the mortgage contract so as to shorten the effective term of the loan.Example: A mortgage is originated for $100,000 at 8% interest for 30 years. The monthly principal and interest payment is $733.76. By increasing the payment by $100 per month, accelerated amortization will result in a loan payoff period of slightly more than 20 years.