Amortization (Loan Paydown)

Amortization is paying down a loan through scheduled payments that split between interest and principal. Early payments are interest-heavy; as the balance shrinks, more of each payment goes to principal and the paydown accelerates.

Why investors care: on a rental, the tenant's rent covers the mortgage, so the property helps buy itself down. Every dollar of principal paid is equity you own, built passively, payment by payment.

Paydown is wealth, not cash

Principal paydown builds your stake but is not spendable money. You unlock it by refinancing or selling. That's why a strong investment balances two things: sustainable cash flow you can spend, and steady equity growth (paydown plus appreciation) you harvest later.

Where you'll see it in Rescover

Every analysis projects loan paydown across your hold period as part of wealth accumulation, alongside cash flow and appreciation, so you see what the deal builds, not just what it pays.