Amortization

Amortization is the process of paying down a loan through regular, equal payments over time. Each payment covers the period's interest first; the rest reduces the principal. Early in the loan, most of the payment is interest; over time, the balance shifts toward principal.

A 30-year mortgage is fully amortizing over 360 monthly payments. Interest-only mortgages don't amortize at all during the IO period — the principal stays constant until amortization begins.

Why it matters for Milo customers

Milo's crypto-backed mortgages amortize like traditional 30-year loans. Your monthly payment is fixed and predictable for the life of the loan, even as your Bitcoin or Ethereum collateral fluctuates in value behind the scenes.

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