The length of time used to calculate the payback period of a mortgage. Higher amortization periods result in lower monthly payments but more interest charged in the long run. A normal amortization period is 25 years but it can be negotiated as low as 5 or as high as
30 years. (Mortgage)

Example:

Assuming a mortgage of $100,000 and an interest rate of 5.0% per year, see the effect on the total interest payable for different amortization periods.

Comparison of Interest Paid For Different Amortization Periods
Amortization	Number of Payments	Monthly Payment	Total Payments	Total Interest
10	120	$1,061	$127,279	$27,279
15	180	$791	$142,343	$42,343
20	240	$660	$158,389	$58,389
25	300	$584	$175,377	$75,377
30	360	$537	$193,256	$93,256