Amortization is best described as:

Amortization is best characterized by the process in which a borrower makes regular payments over time to pay off a loan. The structure of these payments typically involves an initial period where the payment amount goes primarily toward interest. Over time, as the principal balance decreases, a greater portion of each monthly payment is applied to the principal. This phenomenon leads to a decreasing amount of interest in each subsequent payment while the overall monthly payment remains consistent.

Therefore, the description that highlights the decreasing interest payment alongside the increasing principal payment accurately reflects the mechanics of amortization. Understanding this concept is crucial for grasping how loans are structured and how borrowers build equity over time.