Define "amortization."

Amortization refers specifically to the process of repaying a loan over time through regular, scheduled installments. These payments typically consist of both principal, which is the original loan amount, and interest, which is the cost of borrowing the money. Over the life of the loan, the proportion of each payment that goes toward the principal gradually increases, while the proportion that goes toward interest decreases. This structured repayment plan allows borrowers to systematically pay down their debt until it is fully discharged by the end of the loan term.

The other options describe different concepts relevant to loans and real estate but do not accurately define amortization. The total interest paid over the life of a loan pertains to the overall cost incurred but does not capture the repayment structure. The initial loan origination process refers to the steps taken to create a loan, not the gradual repayment. Similarly, methods to increase property value involve various strategies in real estate investment, which again is unrelated to the specific definition of amortization.