Self-Amortizing Mortgage

Residential mortgage in which the loan is fully paid over a scheduled time period, usually fifteen or thirty years, through regular payments of principal and interest. The borrower does not have to make a lump-sum Balloon Payment at the end of the mortgage. Lenders can provide amortization tables showing exactly how much principal and interest are paid over the full term of the loan.

One that will Retire itself through regular Principal and Interest Payments. Contrast withBalloon Mortgage, Interest-Only Loan.
Example: Collins borrowed $100,000 with a self-amortizing mortgage at 8% Interest with a 30-year Term. Principal and Interest Payments are $733.77 each month for the 30 years, at the end of which her loan will be amortized fully.