Definitions for

**"Amortization"****Related Terms:**Amortize, Amoritization, Balloon, Amortized loan, Balloon loan, Amortization schedule, Balloon mortgage, Remaining term, Balloon payment, Balloon payment mortgage, Principal and interest, Deferred interest, Loan principal, Capitalized interest, Principal balance, Repayment schedule, Balloon loans, Interest-only loan, Balloon payments, Biweekly payment mortgage, Prepayment, Additional principal payment, Balloon note, Capitalizing interest, Negative amortization, Capitalization, Interest-only payment, Amortization period, Bi-weekly mortgage, Level payment mortgage, Amortized mortgage, P&i, Biweekly mortgage, Interest only loan, Debt service, Original principal balance, Loan balance, Payoff, Pre-payment, Blended payments, Partial payment, Biweekly loan, Remaining balance, Simple interest loan, Interest-only, Monthly payment, Repayment, Capitalization of interest, P & i, Installment

The extinction of a debt, usually by means of a sinking fund; also, the money thus paid.

Payment of debt in regular, periodic installments of principal and interest, as opposed to interest only payments.

The gradual repayment of your mortgage, both principal and interest, over time.

The repayment of a loan through installment payments.

See Use Allowance or Depreciation.

(1) The process of making regular, periodic decreases in the book or carrying value of an asset. For example, when a bond is purchased at a price above 100, the difference between the purchase price and the par value, the premium, is amortized. Premiums are usually amortized in roughly equal amounts that completely eliminate the premium by the time that the bond has matured or by the call date, if applicable. (2) Liquidation of a loan or security by means of periodic reductions. The principal amount of loans is amortized by the periodic, usually monthly, payment of a fraction of the principal calculated to repay the entire amount of principal due by the date of the last scheduled periodic payment. Amortization methods differ based upon the type of loan. Mortgage loans and securities usually have level payments of principal and interest. For such amortizations, the interest consumes most of the early payments and, therefore, principal amortization increases as the loan ages. Many business loans use a level amortization with roughly equal principal reductions from each periodic payment.

A method for liquidating a debt by making annual payments to a sinking fund which in a given time with the accumulated interest becomes equal to the debt.

1. The provision to pay a debt over a period of time. 2. The gradual repayment of borrowings in a series of installments. 3. A transaction or security where the principal reduces over the life of the agreement. 4. The writing off or reduction in value of an intangible asset over time (c.f.depreciation)5. Allocation of the cost of an asset over its estimated useful life.

The gradual extinguishment (or accumulated provision or reserve therefor) of an amount in an account by pro-rating such amount over a predetermined period, such as

The paying off of a debt by periodic installments over a specific period of time.

While depreciation involves periodic charges set against tangible assets, amortization mainly relates to periodic charges made against income over the estimated useful life of an intangible asset.

a procedure by which the capital cost of projects, such as roads or bridges, is written off over a specified period of time as the timber volumes developed by the projects are harvested and extracted.

The repayment of a loan through regular periodic payment.

MP] The repayment of principle from scheduled mortgage payments that exceed the interest due.

A payment plan that enables the borrower to reduce his debt gradually through monthly payments of principal.

The reduction of debt by regular payments of interest and principal sufficient to pay off a loan by maturity.

This is the decreasing of a loan's principal amount, once payment exceeds the interest. In other words, if you take the monthly payment and subtract the interest, it equals the amortization. The balance then on the loan is amortized with each scheduled payment.

an accounting method that reduces the value of an asset on a regular basis over time.

Provision for the gradual reduction of an obligation by periodically contributing to a fund to discharge a debt or make replacement when it becomes necessary.

The method of repayment of a loan which mixes the monthly payment with interest and principal.

The act of expensing capitalized assets over a period of time consistent with their economic life. Economic life is calculated as the time for which a capitalized asset can be expected to produce income, measured against its capitalized value.

Spreading the deduction of a qualified investment out over a set period of time, as in amortizing the cost of reforesting a cut over parcel of land. (See USDA Ag Handbook No. 681, p. 17)

The reduction of a debt through periodic repayments of interest and principal sufficient to pay off a loan by maturity. In accounting amortization gradually reduces the cost value of a limited life or intangible asset through periodic charges to income.

Repayment of debt through regular installment payments, which are applied to both the principal and the interest.

An accounting term indicates the appointment of an incurred expense over a period of time, such as the life of an asset.

An accounting procedure which gradually reduces the cost or value of a limited life or intangible asset through periodic charges against income. This procedure is also commonly known as depreciation with the periodic charges usually treated as current expenses for purposes of determining income.

The number of years it will take to pay off the entire amount of a mortgage. In Ontario, most mortgages are amortized over 25 years.

a method of equalizing the monthly mortgage payments over the life of the loan, even though the proportion of principal to interest changes over time. In the early part of the loan, principal repayment is very small and interest repayment very high, at the end of the loan, that relationship is reversed. *See also Negative Amount.

A payment plan by which the borrower reduces his or her debt gradually through monthly payments of principal.

The process of repaying a loan through a series of installment payments.

A payment with equal periodic payments calculated to pay off the mortgage by the end of a fixed period.

A gradual paying off of a debt through your payments on principal and interest.

The process of reducing debt through a schedule of fixed payments at regular intervals of time. The amount of this payment that applies to interest and the amount that applies to principal changes over time.

The systematic and continuous payment, through installments, of a mortgage

Amortization is the process of paying off a loan through a series of periodic payments to a lender. The payments include two items: interest, which is what it costs you to borrow the money, and principal, which is the amount of money you borrowed.

The process of paying off a loan by making regularly scheduled payments of principal and interest according to the terms of the loan.

The deduction over time of amounts spent to create or improve certain capital assets. Amortization — instead of depreciation — is required for certain assets, such as goodwill, that are enumerated in the tax law. Note that the tax meaning of this term differs from the financial meaning of the term “amortization,” as in “amortization of a loan.

The method by which your loan is fully paid off by the end of your loan life. (30 years is most common.) You will pay mostly interest at first, and as the principal balance of your mortgage goes down, more and more of your payment will go to principal until it is paid off.

The process of repaying a mortgage loan gradually, with equal periodic payments combining principal and interest. Your payments are calculated so that the debt is paid off at the end of a predetermined period of time.

A plan for paying off a financial obligation by making periodic installment payments over a set period of time, at the end of which the loan balance is zero. Often mortgages have a 30 year amortization, requiring the borrower to make 360 equal monthly payments.

Amortization refers to the repayment of a mortgage loan with regular payments to cover the principle and interest.

The length of time that it will take to pay off a debt at the mutually agreed upon interest rate and payment amount. An example of an amortization schedule for a $23,000 balance with payments of $250 at 11% interest is shown below: Payment # Total Payment Interest Principal Balance---$23,000.00$250.00$210.83$39.17 22,960.83 250.00 210.47 39.53 22,921.30 250.00 210.11 39.89 22,881.41 250.00 209.75 40.25 22,841.16

A charge against earnings over an extended period of time to recognize the value paid for an intangible asset such as a trademark or " goodwill."

Payment of a debt, typically a mortgage loan, made in equal installments.

The reduction of a mortgage loan by regular payments.

Means loan repayment by equal periodic payments calculated to pay off the debt within a fixed period, including accrued interest on the outstanding balance.

Sometimes referred as the systemic payment plan -- such as a monthly payment -- so that your loan is paid off over the specified loan period.

Loan repayment by set amounts and at set intervals, calculated to fully repay the debt and any interest accrued by the end of the amortization term.

Paying off a debt in regular and equal payments. It is the total interest for the term of the loan plus the principal, divided by the number of payments.

Loan retirement by equal periodic payments calculated to pay off the principal at the end of a fixed period of time and to pay accrued interest on the outstanding balance.

To liquidate on an installment basis; the process of gradually paying off a liability over a period of time.

The repayment of a debt, usually over a period of time. It is usually sufficient to cover principal and interest, unless the payments are graduated (scheduled to change over the period of the obligation).

The gradual reduction of debt through payments to a creditor.

Liquidation or gradual retirement of a financial obligation by periodic installments.

Gradual reduction of a loan debt by periodic installment payments (usually monthly) of interest and principal.

The process through which the mortgage debt is altered, usually declining, as payments are made to the lender. "Negative amortization" occurs when monthly payments are too small to cover either the principal or interest reductions.

The process of reducing the principal loan amount by making regularly scheduled payments and interest according to the terms of the mortgage note.

The repayment, in stages, of an installment loan over the maturity period of the loan. Each payment consists of the accrued interest and an amount applied to repay the principle balance.

The process of spreading out loan payments over a period of time. Borrowers receive estimated repayment or amortization schedules when they choose a particular repayment option.

Repayment of a mortgage loan through monthly installments. Monthly payment is based on a schedule that will allow you to own the home (reduce balance to zero) at the end of a specified period of time (i.e. 15 years, 30 years, etc.).

The method of paying a loan through monthly repayments is referred to as amortization.

The timely payment of principal of a mortgage loan until the debt has been paid in full.

The repayment of a loan or debt in regular payments. Each payment is split into a primary repayment and an interest fee.

A loan-repayment method whereby the total principal amount borrowed is repaid gradually during the life of the loan. The payment made by a mortgage holder each month is composed of interest on the outstanding principal amount and principal. Since the payment that is made by the mortgage holder is typically fixed, the interest component of the payment gradually decreases as the original principal balance is reduced.

The process of paying down debt during the term of the loan.

Mortgage loans are amortized when they are repaid in equal payments consisting of principal and interest. Over time, as the mortgage is repaid, the outstanding portion of the debt is reduced and the equity increases. In the early years of the mortgage, the largest portion of the mortgage payment pays the interest on the loan and the smallest portion pays back the loan principal; in the later years of the loan, the reverse is true. Annual Percentage Rate (APR) The interest, points, and loan fees, when expressed as a percentage of the amount loaned.

This is a payment plan that allows the homebuyer to lower the debt slowly and over time through monthly payments made toward the principal.

The systematic assignment of the cost of intangible assets to expense.

repayment of a loan by systematic installments.

Liquidation of a debt by making periodic payments over a set period, at the end of which the balance is zero.

Amortization is payments of debt in equal instalments of principal and interest, rather than interest only payments.

retiring a debt through periodic payments, including principal and interest.

Aperiodic reduction of a mortgage by making specific payments over a stated period of time.

The process of retiring debt or recovering a capital investment through scheduled, systematic repayments of principal; a program of periodic contributions to a sinking fund or debt retirement fund; that portion of a fixed mortgage payment applied to reduction of the principal amount owed.

A payment plan that reduces a borrowerâ€™s loan debt through monthly payments of principal and interest. A schedule shows the amount due each month and the loanâ€™s balance.

The total amount lessee is responsible for the use of the vehicle before interest and taxes. (Capitalized Cost - Residual).

A gradual reduction of the mortgage principle through periodic scheduled payments over the life of the loan.

The recognition of part of an intangible asset's cost as an expense during each year of its useful life. Items that are amortized include goodwill, start-up expenses and purchased patents.

The liquidation of a financial obligation on an installment basis. It can also mean a recovery, over a period of time, of cost or value.

The process of gradually paying off a liability over a period of time, i.e., a mortgage is amortized by periodically paying off part of the face amount of the mortgage.

The reduction of a loan by regular, usually monthly payments of principal and interest calculated to retire the principal at the end of a fixed period and to pay accrued interest on the outstanding balance.

is the act of reducing the amount owed on a loan. Amortization can be made either in one or more lump sums, as well as in periodic installments.

The process of fully paying off debt by installments of principal and earned interest over a specified period of time.

The repayment of a loan by monthly installment payments of principal and interest, until the loan has been paid in full.

The number of years required to repay a mortgage or loan. This period assumes the payment schedule as set out in the original mortgage or loan contract.

The gradual reduction of debt by means of periodic payments sufficient to pay principal and interest and thereby liquidate the debt.

In loan terms, it is the periodic payment of interest and principal to pay down a loan. In accounting terms, it the periodic writing down of an intangible asset. It is similar to the concept of depreciation to write down the value of assets.

Repaying principal and interest on a loan through regular and equal installments in which each payment includes a larger percentage of principal and a declining percentage of interest.

Repayment of a loan in regular equal installments that pay both the principal and interest.

The loan repayment plan, which determines monthly principal and interest payments.

This term is used in two senses: (1) The repayment of Principal and Interest components of a Loan, over a period of time. (2) Write-off of an expenditure (like issue cost of shares, pre-incorporation expenses) over a period of time.

Gradual reduction of loan debt through periodic interest and principal payments.

Repayment of a debt in equal installments resulting in retirement of the debt - rather than interest only payments.

The period of time, most often 15, 20 or 25 years, required to reduce a debt to zero when payments are made regularly.

The period of time it takes to pay off your mortgage in full. Typically, the longest amortization available has been 25 years. However, 30 & 35 year amortizations are now available for insured mortgages only.

Amortization is the gradual paying off of your mortgage. Each month, you pay a certain amount of the interest and of the principal.

Reduction in value of an intangible asset or a lease. Basically the same as depreciation (which is used in connection with tangible assets) but the accounting treatment of it varies, because of the difficulty in valuing intangibles.

A method of apportioning the monthly mortgage payments over the life of the loan. Over time, the interest portion of the loan decreases, and the amount applied to principal increases. Many home mortgages are "fully amortized" in 15, 20 or 30 years.

A method of gradually paying off principal on a mortgage. Each payment reduces or amortizes the original amount

The method of calculation of the principal and interest breakdown of each monthly payment. The amount of interest per month is typically higher early in the life of the loan, and principal higher toward the end of the loan period.

Repayment of a mortgage in gradual installments.

Amortization is the process of repaying a loan in installments.

Repayment method which enables repayment of loan through regular monthly repayments. The regular monthly payment usually consists of both interest and principal amount.

A schedule of payments for a loan which includes principal and interest over a specific period.

The process of gradually paying down a debt, usually by making monthly payments as described within the NOTE. In the early years of a mortgage, most of the monthly payment goes toward interest. This picks an amount of time, at the approximate mid-point of the term, and the ratio is reversed i.e. most of the monthly payment will go towards the principal.

The rate and terms of paying off tenant improvements over the term of the lease. Usually an annual rate of interest is used to calculate the payment.

Debt reduction through regularly scheduled payments, which are calculated to pay off the loan within a specified period of time.

The process of reducing a loan balance to zero over a period of time by paying systematic installments. An amortization schedule shows the breakdown of how each payment is applied to the principal and interest.

The repayment of a loan, structured into monthly payments of principal and interest, during the beginning stage of the payment process, most of the monthly amount is applied to interest and in the later stages, the principal receives the greater portion of the payment.

Repayment of a mortgage loan by installment payments

The process of reducing an outstanding debt by making regular payments that include both principal and interest until a loan is eventually repaid. An example of amortization is a home mortgage.

To liquidate a debt by installment payments.

The scheduled loan repayment structure of regular installments including principal and interest.

paying off a debt through periodic payments.

Scheduled reduction of long-term debt / liability or depreciation of the same.

This is similar to straight-line depreciation, allowing a business or individual to write off an expenditure over a number of years. Amortization generally applies to intangible assets. For example, you purchase a business consisting of a machine with a fair market value of $10,000 and goodwill of $15,000. You can't expense (write off) the cost in the year acquired, but you can depreciate the machine using any of several methods, including one that provides greater deductions in the early years. The goodwill can only be amortized over 15 years using a straight-line method, or $1,000 per year.

Paying off the principal balance of the mortgage, usually by a combination of equal periodic payments and extra payments of principal at irregular intervals. Usually associated with a target period (the standard being 25 years) over which the initial blended payment is calculated. The maximum amortization available in Canada is 40 years.

The gradual payment of a debt or the writing off of intangible assets over a period of time as they expire.

Amortization is the spreading of expenses over future time periods of an intangible balance sheet item such as a Leasing (mortgage) or goodwill.

The depreciation (or repayment) of an (usually) intangible asset (i.e. loan, mortgage) over a fixed period of time.

The repayment of a liability, such as a mortgage, by making gradual payments over a period of time.

The gradual reduction of a debt by means of regular payments. Payments go towards principal and interest in "blended" amounts. The normal amortization period for a mortgage in Canada is 25 years, but can be as short as 5 years or as long as 40 years.

The systematic, gradual reduction of mortgage debt over the life of the loan through the application of regular payments.

Gradual repayment of a loan by periodic installments of principal and interest. Back to the top

Gradual payment of a debt in installments including principal and interest over a set period of time, where at the end of the period the entire debt has been paid.

The deduction of an expense in installments over a period of time, rather than all at once.

A process of gradually paying off a debt by making equal periodic payments of principal and interest on a loan at equal intervals of time. Eg. (250.00 per month for 30 years.)

Number of fixed payments or years it takes to repay the entire mortgage loan.

The process of repaying your loan balance through periodic installments of principal and interest.

Is a loan payment by equal periodic payments calculated to pay off the debt at the end of a fixed period, including accrued interest on the outside balance.

Repayment of loan by installment payments. As the payments are made, the debt is reduced so that at the end of fixed period or term, no money will be owed.

The gradual write-off of an asset over time.

a method of equalizing the monthly mortgage payments over the life of the loan, even though the proportion of principal to interest changes over time. In the early part of the loan, the principal repayment is very low, while the interest payment is very high. At the end of the loan, the relationship is reversed.

Payment to reduce the principal of a debt in regular, periodic installments.

the process of repaying a debt by installments; in company accounts the systematic write-off of costs incurred to acquire an asset (to amortize).

The repayment of a financial obligation over a period of time in a series of periodic installments. Specifically, this is the payback of the principal owed to the lender. The effect of amortization is to build up the paper value of the investor's (owner's) equity and to reduce the debt obligation. It should be noted that a portion of each payment consists of a blend of interest and amortization of principal. The interest portion is tax deductible, whereas the amortization is not.

A repayment method in which the amount you borrow is repaid gradually though regular monthly payments of principal and interest. From the Latin "amorte" to kill off. Generally this loan has a zero balance at the end of the term.

The gradual paying off of a loan in regular installments, thus "amortizing" or reducing the amount borrowed. A monthly mortgage payment consists of both amortization and interest.

The process of gradually eliminating a debt by making periodic payments to reduce it.

Repayments of the capital element of a loan or mortgage separate from the interest. A term that is more commonly used in the US to describe the regular repayment of interest and principal to pay off a debt at maturity.

A loan repayment plan that will pay off the loan by making regular payments of principle and interest.

Amortization is the gradual reduction of loan principal that occurs as you make periodic loan payments. Generally, the loan principal is completely amortized with the final payment. As you pay back the loan, an increasing amount of each payment is applied to principal and a lesser amount is applied to interest. Amortization is also a process of spreading a cost that is incurred upfront over the term of the loan or life of the asset.

Payment of a debt through periodic installments of principal and interest.

The periodic expense attributed to the decline in usefulness of an intangible asset.

The operation of paying off indebtedness, such as a mortgage, by installments. The conventional amortization periods are15 or 30 years.

A payment plan that enables the borrower to reduce debt through regular payments of principal and interest.

Paying an interest-bearing liability by gradual reduction through a series of installments, as opposed to one lump-sum payment.

The reduction of debt by systematic payments. Sometimes applied to assets with indefinite life or other financial obligation.

A term related to tooling costs, which refers to the period of time over which the cost of building tools must be spread (amortization is a factor of a percentage of profits and time. See: Tooling.

The gradual expensing of capitalized intangible assets and deferred charges (e.g., goodwill, patents, financing costs, business transformation costs).

An accounting term t refers to the reduction in the value of an intangible item, such as a patent or trademark, through periodic reductions in income. Anniversary Date - The annual recurrence of the policy's effective date. The anniversary date is often the time the owner of a universal life policy is permitted to make changes to the policy, such as increasing the death benefit.

Schedule of payments to repay a mortgage loan over regularly specified time intervals, showing the amount of each payment and how much is applied to principal and interest.

The schedule of payments that establishes the amount of payment to be applied to the principal and the amount to be applied to interest, usually on a monthly basis, from the start of the loan to the end.

Way of repayment of loan in the form of regular monthly repayments. The regular monthly payment pays a part of interest and principal amount.

(1) A method of paying off an interest bearing liability whereby the amount is gradually reduced through a series of installments comprising both principal and interest components, as opposed to paying it off in a single lump-sum payment. (2) A technique for gradually extinguishing a liability or capital expenditure over a period of time, e.g. as in a typical home mortgages.

The gradual reduction of a debt by periodic payments large enough to meet current interest payments and to repay the principal at maturity. The loan is repaid through regular, monthly payments of principal and interest paid for a pre-determined amount of time.

Is the periodic paydown of principal. This is a common feature of most mortgages. Amortize also refers to the accounting write down or reduction in an intangible asset. This creates a charge against income. Amortization can also refer to the reduction in the cost basis of a bond purchased at a premium to par. Sometimes, amortization is used as a synonym for depreciation or other write down of an asset or liability. In the later capacity it tends to apply to intangible assets. See Interest Impact on Instalment to Amortize or Amortization.

Reducing the principal of a loan by regular payments.

The systematic retirement of a loan over time by means of periodic payments of blended principal and interest.

The gradual reduction in the balance of a mortgage by periodic payments.

When monthly payments are large enough to pay the interest and also reduce the principal on a mortgage; negative amortization occurs when monthly payments do not cover interest costs so the balance due increases.

Gradual repayment of a loan over a specified period of time by periodic installments of principal and interest.

The gradual retirement of a debt by means of partial payments of the principal at regular intervals.

The repayment of a mortgage loan, both the principal and interest, through regular installments.

The gradual reduction of the mortgage debt through regularly scheduled payments over the term of the loan.

The repayment of a loan over the specified time period of that loan. · See Also · Amortization Schedule · Mortgage

The payment of a debt in installments over a period of time, during which principal amount and interest are paid off.

The breakdown of a mortgage loan (including principal and interest) into equal payments over a specified period of time. An amortization schedule shows the amount of each payment applied to principal and interest and the remaining balance after each payment is made.

Accounting or financial process of reducing an amount by periodic payments or write-downs. Refers to liquidation, writing off or extinguishing of a debt over a period of time.

the arrangement by which debt payments are made over time, which takes into account the ratio of interest and principal that changes as the loan matures.

The period of time required to reduce a debt to zero when payments are made regularly. Amortization periods are most often 15, 20, or 25 years long.

Means loan payment by equal periodic payment calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.

The reduction of debt through your payments on principal and interest.

1) In accounting terms, this refers to the method in which an intangible asset is depreciated over a specified period of time. 2) In terms relevant to signage and urban planning, it conveys the "grace period" beginning on the date a sign owner is notified that removal of a previously conforming sign has been ordered, and ending on the date removal is required. This process makes a structure, which was legally erected with all permits, legally non-conforming for period of time. After an amortization period, the sign becomes illegal and non-conforming. Amortization has often been found to be a form of regulatory taking. The legality of amortization depends on state law and numerous other conditions, and is frequently unenforceable.

In real estate, this is a fixed monthly payment that completely extinguishes a loan in a particular period of time. Typical amortization terms in California are 15 and 30 years; therefore, the same monthly payment is made on a fixed rate loan every month for 15 or 30 years. That payment includes principal and interest and at the end of the term the loan is completely paid off.

1. The process of retiring a debt through repayment of principal. Amortization occurs when the payment on the debt exceeds the required interest payment for a particular time period. For example, suppose a loan has a balance at the beginning of a year of $1000,000, annual payments of $12,000 and a 10% interest rate. Interest for the year would be 10% of $100,000, or $10,000. Amortization would be equal to $12,000 less $10,000 or $2,000 per year. 2. Annual deductions allowed in the calculation of federal income taxes.

A way that you will you repay your mortgage gradually through regular equal monthly payments of principal and interest. The amounts of these payments are calculated to let you own your home debt-free at the end of a fixed period of time. During the first few years of your loan, most of the payment will be applied to interest. During the final years, most of the payment will be applied to principal. This type of repayment method is called amortization.

The gradual reduction or liquidation of an amount over a period of time according to a specified schedule (such as, the retirement of a debt by serial payments to the creditor or in a sinking fund) either by a direct credit, or debit; or through the use of a valuation account.

loan payment by equal periodic payments, calculated to pay off the debt at the end of a fixed period as well as the accrued interest on the outstanding balance.

The gradual repayment of a loan loan by equal installments.

A payment plan which enables a borrower to reduce his or her debt gradually through periodic regular payments of both interest and principal that are equal or nearly equal.

The gradual repayment of a mortgage loan through regular payments of principal and interest.

The process of paying off a mortgage in regular increments.

Payments made over a period of time on a loan's principal and interest.

A series of payments over a specific period of time calculated to fully pay the loan amount plus interest by the end of the life of the loan.

The process of paying the principal and interest on a loan through regularly scheduled installments. Initially, most of each payment is applied toward interest owed. Later in the loan term, each payment is increasingly applied toward principal.

The non-cash cost of "using up" an intangible asset during a particular period.

The repayment schedule of a debt in a series of equal periodic amounts until the total debt, including interest, is paid in full.

The process of fully paying off indebtedness by installments of principal and earned interest over a definite time.

The distribution of a single lump-sum cash flow into many smaller cash flow installments, as determined by an amortization schedule. Unlike other repayment models, each repayment installment consists of both principal and interest. Amortization is chiefly used in loan repayments (a common example being a mortgage) and in sinking funds. Payments are divided into equal amounts for the duration of the loan, making it the simplest repayment model. A greater amount of the payment is applied to interest at the beginning of the amortization schedule, while more money is applied to principal at the end.

A monthly repayment schedule calculated to pay off a debt by a set date with specific amounts allocated to the loanâ€(tm)s interest and principal.

The process of paying regular installments in order to take care of a financial obligation. When you buy a repossessed property, amortization may refer to the creation of a payment plan for your mortgage or home loan.This plan will let you make equal and regular payments for the mortgage term (which is called the amortization period).Each payment made in amortization goes towards paying interest and reducing the principal owed.

Length of time it takes to pay off a loan.

The repayment of a mortgage loan by installments with regular payments to cover the principal and interest.

Reduction of the principal of a debt in regular, periodic installments.

Process of the gradual retirement of an outstanding debt by making periodic payments to the trust fund.

Gradual and periodic reduction of any amount, such as the periodic writedown of a bond premium, the cost of an intangible asset or periodic payment of mortgages or other debt.

the systematic repayment (e.g. monthly, quarterly, or yearly) of a debt or loan, such as a bond or mortgage, over a specific time period.

The gradual repayment of a debt by means of systematic payments of principal and interest over a set period, where at the end of the period there is a zero balance.

The gradual elimination of a loan, with regular payments, over a set period of time. The payments are designed to cover both the principal and the interest.

Provision for the payment of a debt as to both principal and interest in equal installments over a period of time.

The period of time on which the repayment of loan principal and interest is based. Sometimes loans may have different amortization schedules and terms. There are three basic ways to repay a loan: (a) in equal installments, each containing a blend of principal and interest; (b) in varying but regular payments which result from paying off principal plus interest on the amount actually borrowed; and (c) in very irregular principal payments often incorporating a larger final payment (see Balloon Payment).

The reduction of a debt by regular, usually monthly, installments of principal and interest. An amortization schedule is a table showing the payment and the amounts applied to interest and principal. Annual Cap See: Cap

satisfying the outstanding balance on a loan with regular payments that are applied equally toward the principal and the interest.

For loan purposes, the systematic process by which a lender calculates loan payments so as to liquidate a debt over time. Payments are made at specific time intervals to reduce the outstanding debt to zero at the end of the loan period.

The systematic and continuous repayment of debt through equal periodic payments until the debt has been paid in full.

The process of gradually paying down the principal balance of the loan over the stated term of the loan. As each monthly loan payment is made, a portion of the payment is credited to pay the interest costs of the loan and the remaining portion of the payment is applied to reduce the principal balance of the loan.This is in contrast to an interest-only payment where the principal balance is never reduced.

The period, in years, that it takes to pay back your mortgage. For example, a mortgage with an amortization period of 25 years means it will take 25 years to pay down.

Repayment of a home loan by installment payments

The process of paying off a debt together with interest, usually with equal payments at regular intervals over a period of time.

The length of time it takes to pay off your mortgage by equal installment or periodic constant payments.

The number of years, most often 15, 20 or 25 years, it will take to repay your mortgage.

The way a bank figures out monthly payments on a loan.

The process of cost allocation that assigns the original cost of an intangible asset to the periods benefited.

The periodic expense of an amount paid for an intangible asset over a period of time. New businesses are able to amortize their start-up expenses over at least a 5-year period.

To provide for the gradual elimination of debt by paying a portion of principal at the time of each periodic interest payment.

Provision for payment of a debt or obligation on an installment basis; also, recovery, over a period, of cost or value. In zoning, gradual elimination of a nonconforming use.

Length of time in years (or, number of payments) to repay the entire mortgage loan.

The repayment of a loan through periodic installments over a fixed period of time.

Repayment of a mortgage loan through monthly installments of principal and interest: the monthly payment amount is based on a schedule that will allow you to pay off your loan at the end of the specified term.

A loan repayment plan, which enables the borrower to reduce his debt gradually through monthly payments of principal and interest.

Process of gradually reducing a debt through installment payments of principal and interest instead of paying off the debt all at once.

The act or process of extinguishing debt, with equal payments at regular intervals over a specific period of time.

Where loan amount is calculated to pay off the debt at the end of a fixed term, including accrued interest on the outstanding balance, by making equal periodic payments.

Repaying the principal and interest of a loan in periodic, scheduled installments wherein the initial payments are applied mostly toward interest and much later in the loan, mostly toward principal.

Full monthly accounting of thee payment of a loan obligation shown in a series of installments for the course of the loan.

the gradual repayment of a loan by installments calculated to retire the principal at the end of a fixed period.

The repayment of a loan by regular installments over a fixed time period.

The gradual reduction of a debt or other liability through regular payments, or the depreciation of a non-tangible asset over its lifetime.

The reduction of debt by regular principal payments.

To provide systematic equal amounts of money in order to replenish the full loan amount.

The expense created by allocating the cost of plant and equipment to the periods in which they are used; represents the expense of using the assets. (Chapter 4) A process of systematically allocating the cost of a capital asset to expense over its estimated useful life. (Chapter 12)

The elimination of the mortgage debt through regular payments over a specific length of time. The payments must be large enough to cover the principal and the interest.

A repayment method in which the amount you borrow is repaid gradually through regular monthly payments of principal and interest for a predetermined length of time. During the first few years, most of each payment is applied toward the interest owed. During the final years of the loan, payment amounts are applied almost exclusively to the remaining principal.

Mortgage loans are amortized when they are repaid in equal payments consisting of principal and interest. Over time, as the mortgage is repaid, the outstanding portion of the debt is reduced and the equity increases. In the early years of the mortgage, the largest portion of the mortgage payment pays the interest on the loan and the smallest portion pays back the loan principal; in the later years of the loan, the reverse is true. Lenders and borrowers are protected against financial loss which may result from legal defects in the Title, or other claims against the Title by insurance known as Title Insurance.

An accounting term indicating the appointment of an incurred expense over the life of an asset. For example, if a three-year magazine subscription (an expense) is paid in year one, it should be "amortized" (or "spread out") over the three-year life of the subscription (the asset).

Gradual reduction of the mortgage debt through periodic payments scheduled over the mortgage term.

The liquidation of a debt by regular, usually monthly, installments of principal and interest. An amortization schedule is a table showing the payment amount, interest, principal and unpaid balance for the entire term of the loan.

The length of time it will take to pay off the mortgage in its entirety.

The process of repaying a debt through regular payments of principal and interest.

(1) the process of liquidating a debt through installment payments; (2) prorating expenditures over time in order to write them off.

The loan payment amount equal to periodic payments calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance. Most loans are amortized over 15, 20 or 30 years.

Payment of a loan with regular installments calculated to pay off the loan at the end of a fixed period of time.

The process of allocating a portion of a leased asset's value to business expense over the periods benefited.

The periodic principal pay down of a loan.

The repayment of a loan through instalment payments.

The paying off of a debt such as a mortgage in periodic installments for the term of the loan.

The process of gradually paying down the principal of the loan. As each payment toward principal is made, the mortgage amount is reduced or amortized by that amount. This is in contrast to an interest-only payment where the principal balance is never reduced.

The process of paying the principal amount of an issue of bonds by periodic payments either directly to bondholders or to a sinking fund for the benefit of bondholders. Payments are usually calculated to include interest in addition to a partial payment of the original principal amount.

The periodic allocation of the cost of an intangible asset to the periods it benefits.

The reduction of loan balance by your monthly payments.

() The period of time required to pay off a loan through periodic payments of interest and principal. Amortization periods are most often 15, 20, or 25 years long.

A term used to describe the process of paying off a loan over a predetermined period of time at a specific interest rate. The amortization of a loan includes payment of interest and a portion of the outstanding principal balance during each payment cycle.

The actual number of years it will take to pay back your mortgage loan.

The gradual repayment of a mortgage loan whereby the borrower makes monthly periodic payments to pay the interest due and part of the principal. A fully amortized loan will completely pay off at the end of the loan term.

The payment of a financial obligation on an installment basis. An AMORTIZED LOAN is a loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal. Most first mortgages are amortized over 15 or 30 years.

A gradual reduction of a loan debt through periodic installment payments of principal and interest.

Repayment of a mortgage through monthly installments of principal and interest. The monthly payment amount is based on a schedule that will allow complete repayment of the loan principal by the end of a specific time period (for example, 15 or 30 years)

The loan payment consists of a portion which will be applied to pay the accruing interest on a loan, with the remainder being applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time.

The reduction of your mortgage loan by the monthly payments of principal and interest.

The gradual elimination of a liability, such as a loan, in regular payments over a specified period of time. It can also be defined as writing off an intangible asset investment over the projected life of the asset.

The period of time it takes to pay off your mortgage in full. Typically, most clients choose a 25 year amortization. Some lenders now offer amortizations as long as 30 years.

A payment plan by which a loan is reduced through monthly payments of principal and interest.

The gradual, systematic payment of a debt, such as a mortgage or other loan, in installments of principal and interest for a definite time, so that at the end of that time, the debt will have been paid in full.

The payment of a debt in equal installments that results in the retirement of the debt.

Gradual Debt reduction by means of periodic payments, which includes amounts paid towards both the principal loan amount and the interest (may want to be cautious of loans that have negative amortization).

Amortization is similar to recovering expenditures through straight-line depreciation. Using amortization, your cost or basis in certain property can be recovered proportionately over a specific number of years or months. Examples of costs that can be amortized are the costs of starting a business, reforestation, and purchasing certified pollution control facilities.

A payment plan which enables the borrower to reduce their debt gradually through monthly payments of principal.

The process of paying off the debt or mortgage, usually by equalmonthly payments. Monthly payments are mostly interest at first(because the debt is higher) and almost entirely principal in lateryears, when the loan balance is small.

The period of time it takes to pay off your mortgage in full. Typically you would choose the longest amortization available which is 25 years.

The periodic repayment of the loan balance. As you pay each month, a portion goes to the loan principal and a portion goes to the interest. An amortization schedule shows the balance after each payment is made.

Reduction of a debt by gradual repayment.

The deduction of certain capital expenses over a fixed period of time. Amortization is claimed on Form 4562. Amortizable expenses include business start-up expenses, qualified forestation or reforestation costs, goodwill, going-concern value, covenants not to compete, franchises, trademarks, trade names, and section 197 costs.

Loan payments that will cover both principle and interest in one payment. Your lender will likely give you an amortization schedule outlining your payment schedule.

Amortization is the liquidation or reduction of principal on a mortgage by making payments over a predetermined period of time.

Equal and periodic payments of principal and interest over a specific term to satisfy a mortgage loan.

A schedule that shows the repayment of a mortgage debt with equal periodic installments of both principal and interest, calculated to pay off the loan at the end of a fixed period of time.

The period of time, most often 15, 20 or 25 years, that is required to reduce a debt to zero by making regular mortgage payments.

Amortization is payment of the loan by diving it into equal periodic payments such that the entire loan is paid off at the end of the fixed period, including accrued interest.

The depreciation (or repayment) of an (usually) intangible asset (eg. loan, mortgage) over a fixed period of time. Example: if a loan of 12,000 is amortized over 1 year with no interest, the monthly payments would be 1000 a month.

Payment of a loan in equal installments over a specified period of time so that when time has elapsed, the loan and interest on the loan are fully paid. For example, as each payment toward principal is made, the mortgage amount is reduced or amortized by the amount paid.

The paying down of principal over time. In a typical mortgage loan, the principal is scheduled to be paid off, or fully amortized, over the term of the loan.

Repayment of a loan with periodic payments of principal and interest. The payments are calculated so that the debt is paid off at the end of a fixed period.

Gradually writing off the value of an intangible asset over a period of time. Commonly applied to items such as goodwill, improvements to leased promises, or expenses of a new stock or bond issue.

An accounting procedure that calculates for depreciation by gradually reducing the cost value of an asset through periodic charges to income.

The process of reducing the outstanding principal on an open loan with each payment, usually monthly, so that it is fully repaid at the loan's maturity.

Periodic charges to an asset, as an expense to the business, over the estimated lifetime of the asset. Also known as depreciation.

The method of repaying an auto loan through periodic (usually monthly) payments.

Almost all of the payment in the early years of an amortized loan is applied toward interest. Contrarily, almost all of the payment in the last years of the loan is applied to reduce the principal.

The repayment of home mortgage loans by installments with regular payments to cover the principal and interest.

The process of repaying auto loan in installments is referred to as amortization.

The amount of principal owed on a loan after a payment has been made and interest has been determined.

In the early years of an amortized loan, almost all of the payment is applied toward interest, while in the last years of the loan, almost all of the payment is applied to reduce the principal.

Payment of principal and interest at stated periods for a stated time until debt is paid off.

Term of mortgage loan representing full payment

The gradual diminishment of any amount over a period of time.

The process of paying off debt installments, normally by equal installments over a fixed period of time, as in a 30-year fixed-mortgage.

Loan repayment in equal installments of interest and principle amount.

The allocation of syndicated program series' costs during the period of use to spread total tax or inventory and to determine how much each episode costs the purchaser per airing.

The gradual and systematic writing off of a balance in an account over an appropriate period.

Amortization is a calculation which consists of four parts; the Principal Balance, Interest Rate, Term of Repayment and Do you have additional questions about loans? Click here to contact us. the Payment Amount. As described in the graph, when you begin to repay a loan, the payment goes almost entirely to interest. As the loan progresses, more and more of the monthly payment goes toward the Principal Balance until the balance is zero.

The process of paying the principal and interest on a loan through regularly scheduled installments. Initially, the interest payment portion of the payments are larger than the principal payments, but as principal is paid down, more is applied to the principal and less to interest.

With a mortgage, the borrower agrees to pay back the amount borrowed over a period of time. This breaking of the loan into smaller parts to be paid back over uniform blocks of time is amortization.

Process of writing off the cost of intangible assets â€“ e.g., patents, goodwill, leaseholds, etc.

The length of time over which the borrower agrees to repay the loan. It is used to calculate the principal and interest payment.

A repayment method in which the amount you borrow is repaid gradually though regular monthly payments of principal and interest. During the first few years, most of each payment is applied toward the interest owed. During the final years of the loan, payment amounts are applied almost exclusively to the remaining principal. The most common amoritization on a mortgage loan is 360 month or 30 years. Annual Percentage Rate (APR)-- The cost of credit on a yearly basis, expressed as a percentage. Required to be disclosed by the lender under the federal Truth in Lending Act, Regulation Z. Includes up-front costs paid to obtain the loan, and is, therefore, usually a higher amount than the interest rate stipulated in the mortgage note.

Gradual payment of a debt through regular installments that cover both interest and principal.

Reduction of debt in installments of principal and interest, rather than interest-only payments.

1) The gradual repayment of a mortgage through monthly (e.g. installment) payments. In the early years of a mortgage, most of the monthly payment goes toward interest. Later in the mortgage, more of the payment goes toward reducing the loan's principal balance; 2) The preparation of a payment plan for a loan which allows for equal payments to be made to the creditor at consistent intervals over the life of the loan (the amortization period). Each payment covers interest accrued over the interval period with the remainder of the payment being applied to reduce the principal owed. If every payment is made on time and in full over the amortization period, the loan will be completely repaid at the end of the amortization period.

The method or repayment of a loan through regular periodic payments of principal and interest over the term of the loan.

The period of time it takes to pay off a loan through regular installments that cover both principal and interest.

The process of gradually repaying a loan over an extended period of time through periodic installments of principal and interest.

Most loans are amortized over 15 or 30 years. An amortization plan reduces a loan, eventually to zero, through monthly payments of principal and interest.

The process through which a loan is retired over time through periodic repayment of the principal.

A financial obligation paid in installments; An amortized loan includes both principal and interest, usually due monthly, resulting in complete payment of the amount borrowed, with interest, by the end of the loan term.

The paying off of debt in regular installments over a period of time.

the periodic payment which includes principal and interest.

the systematic and continuous payment of an obligation through installments until the debt has been paid in full.

The gradual reduction of a loan debt by periodic installment (usually monthly) payments of principal and interest.

The gradual repayment of a mortgage through monthly payments over a specified period of time. Example, many loans are amortized over a 30 year period of time.

A method by which monthly mortgage payments are equalized over the life of the loan despite the fact that the proportion of principal to interest changes.

The gradual, systematic payment of debt, such as mortgage and note, by installment payments of the principal and accrued interest at stated periods for a definite time, which, at the expiration of time, the debt will be fully liquidated.

The repayment of a mortgage debt of a period of time in a series of periodic installments. Each payment consists of principle and interest payments. This is the payback of the principle portion of the loan owed to the lender.

A method of debt reduction in which a borrower pays off a portion of the interest and principal periodically. Amortization numbers are found on balance sheets.

Regularly scheduled installment payments calculated to pay off your debt by a specific date. Amortization affects housing expense budgets more than anything else, so it pays to make certain your payments are calculated correctly and your payment obligations can be met.

A reduction of a debt (the principal) by installment payments.

Calculates the loan payment including interest on the outstanding balance to be paid off at the end of a fixed period.

Gradual repayment of a loan (principal) by way of regular installments.

The systematic and continuous payment of a mortgage loan by installments to cover the principal and interest.

The gradual reduction in the principal of a loan through regularly scheduled installment payments. The amortization schedule shows the portions of each payment that are applied to principal and interest, as well as the loan balance remaining after each payment.

accounting method to reduce the value of an asset over time on a regular basis.

Number of fixed payments or the period of time required to reduce a debt to zero when payments are made regularly.

The process of writing the initial value of an asset gradually down to zero over a number of years in a systematic fashion, in order to spread the total amount equitably over these years; the charging against revenue of expenditure which has been incurred in a prior accounting period an which has been capitalized. It is a non-cash charge in the profit and loss statement. It is similar to depreciation, however it usually refers to intangibles assets.

Payment of a debt in equal periodic installments of principle and interest.

the gradual, systematic payment of a mortgage by installment payments of the principal and the accrued interest at stated periods for a definite amount of time.

Repayment of a mortgage, over regularly specified time intervals, with equal payments which would reduce principal after interest has been paid.

The reduction of debt through regularly scheduled monthly payments of principal and interest, which are large enough to pay the loan in full by maturity.

Term used to describe the time over which the mortgage is to be paid, assuming equal payments.

Most loans follow amortization, which means that the loan is paid off gradually through monthly payments on the principal (the amount borrowed).

Repayment of a debt with periodic payments, usually monthly, of principal and interest calculated to pay down the loan within a predetermined time.

This is repaying a loan or debt off in payments that are regulated. Payments are split up into principal amount and an interest fee.

The act of process of extinguishing debt with equal payments at regular intervals over a specified period of time.

the repayment plan which will insure that a loan is eventually paid off, typically utilizing equal valued monthly payments. These payments are usually split into principal and interest, where the amount of principal per payment increases (and interest decreases) as the amortization period elapses.

Gradual debt reduction. Normally, the reduction is made according to a pre-determined schedule for installment payments

The gradual repayment of a mortgage by installments.

The repayment of principal from mortgage payments that exceed the interest due. The payment less the interest equals amortization -- which is the same as the reduction in the loan balance. If the payment is less than the interest due, the balance rises, which is negative amortization.

The period of time, often a maximum of 25 years, required to reduce the mortgage debt to zero when all regular blended payments are made on time and provided the terms (payment and interest rate) remain the same.

Repayment of a loan through a predetermined schedule of payments of principal and interest. At the maturity of the loan, both principal and interest are completely paid.

The repayment of debt through a series of payments called installments.

The payment of a financial obligation on an installment basis. An AMORTIZED LOAN is a loan that is completely paid off, interest and principal rather than interest-only, by a series of regular payments that are equal or nearly equal.

A payment plan which allows a borrower to reduce a debt gradually through monthly payments of principal and interest.

A method of retiring or liquidating a debt by making periodic and regular installment payments. Amortization is the basis for fixed rate mortgages.

A ratable deduction for the cost of certain intangible property over the period specified by law. Examples of costs that can be amortized are goodwill, agreement not to compete, and research and mining exploration costs.

The gradual reduction of a debt by means of equal periodic payments sufficient to meet current interest and liquidate the debt at maturity. When the debt involves real property, often the periodic payments include a sum sufficient to pay taxes and hazard insurance on the property.

The repayment of a mortgage by periodic installments.

The gradual reduction of a loan balance through regular payments.

Repayment of a mortgage loan by intstallment payments

A mortgage payment plan whereby a portion of each payment is applied to interest and the balance of the payment reduce the principal, the result of which is that the loan is paid in full at the end of the loan term.

(1)Reducing debt by repaying the principal with interest, usually according to a schedule established as one of the conditions of the loan. For example, a 30-year mortgage is amortized by regular monthly payments. (2)Amortization also refers to the practice of averaging the initial cost of an investment over its lifetime to calculate a real return.

a gradual paying off of a debt by periodic installments. Example: A $100,000 loan is arranged at a 12% interest rate. The borrower pays $13,500 in the first year. Of the payment, $12,000 is for interest, $1,500 for amortization. After the payment, the loan balance is amortized to $98,500.

boolean Simple Indicates that repayment is made via regular principal and interest payments over time. Schedule would be in ADDITION to schedules provided with interest and principal repayment items.

This is the gradual and systematic payment of a debt by installment payments of principal and accrued interest at stated periods for a definite time. At the end of the amortization period or the expiration of the time, the debt will be liquidated.

Repayment of a mortgage debt with equal periodic payments of both principal and interest, calculated to retire the obligation at the end of a fixed period of time.

is the payment of principal on a liability (including a mortgage), or the write-off of a non-depreciable asset over a scheduled term of years. An Assessment is an extraordinary payment called for by the board of directors of a co-operative or condominium building for the purpose of making a capital improvement, or to provide some other essential service for which funds in the reserve account are inadequate. Balloon Mortgage is one which matures with a balance still owed at the end of the term.

Paying off a debt in periodic installments that are equal or nearly equal.

The depreciation, depletion, or charge-off to expense of intangible and tangible assets over a period of time.

The process of debt retirement or liquidation through systematic periodic payments. For example, most mortgage loans have monthly payments consisting of both principal and interest. Each month, the principal portion of the payment is applied to reduce the outstanding balance of the loan.

The systematic repayment of a loan through periodic installments of principal and interest over the entire term of the loan agreement.

The reduction of debt over time. While the payments may remain constant, the amount that is interest versus the amount that is principal may change over the duration of the loan.

The payment of a loan by periodic payments of principal and interest, resulting in a declining principal balance and eventual payment in full.

Gradual reduction of term debt by periodic payment sufficient to pay current interest and to eliminate the principal at maturity.

A breakdown of periodic loan payments into two components: a principal portion and an interest portion.

An accounting practice of gradually decreasing (increasing) an asset's book value by spreading its depreciation (accretion) over a period of time.

Provision for the payment of a debt or obligation by payment of principal and interest at stated periods for a stated time until debt is extinguished.

Paying off debt in regular installments over a period of time, or deducting certain capitalized expenditures over a specified period of time.

repayment of a mortgage loan through monthly installments of principal and interest; the monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period (for example, 15 or 30 years)

The payment of a debt in installments over an agreed-upon period, during which principal and interest are paid off.

For mortgage use, the term amortization refers to the reduction of debt by regular payments of principal and interest sufficient to pay off a loan by maturity.

A schedule of repayment which includes payments consisting of both principal and interest.

A mortgage is amortized over a period of years. This amortization period is the length of time it takes to pay off the mortgage in full. The usual amortization period is 25 years, however, this can be accelerated to pay off the mortgage more quickly or in some cases can be stretched to 40 years to reduce the monthly payment.

The act of paying down a loan. An “amortization schedule” is a schedule of loan payments which usually includes principal and interest.

The reduction of debt through payments made up of principal and interest.

The actual number of years it will take to repay a mortgage in full. This period can be longer than the loan's term. For example, a mortgage may have a 5-year term and a 25-year amortization period.

The gradual repayment of a mortgage loan through periodic installments.

The process of repaying a loan in equal installments of principal and interest, instead of interest-only payments.

The loan payment is made up of two parts: one portion will be applied to pay the accruing interest on a loan and the other portion is applied to the principal. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases so that the loan is paid off (amortized) in the specified time. Typical amortization periods are 15 or 30 years. Therefore, an amortized mortgage is one that requires periodic payments that include both interest and principal. An amortization schedule is a table that provides a breakdown of the principal and interest payments and the amount owed at any given point during the amortization period.

The process of paying off a loan over an agreed on period of time at an agreed upon interest rate either fixed or variable

A loan payment method in which a portion of the principal is paid in each periodic installment.

The systematic repayment of a loan over a specific period of time at a specific rate of interest.

A loan repayment plan by which the borrower reduces his or her debt gradually through equal periodic payments of both principal and interest, calculated to retire the obligation at the end of a fixed period of time.

The gradual repayment of a mortgage through monthly (i.e. installment) payments. Early payments are applied mostly toward interest. As time goes on, payments go increasingly toward reducing the loan's principal balance.

The process of fully paying off your debt by installments of principal and earned interest over a fixed time.

A payment plan by which a borrower reduces a debt gradually through monthly payments of principal and interest.

(i) A reduction in a debt or fund by periodic payments covering interest and part of the principal. (ii) Writing off an intangible asset investment over the projected life of the assets.

Your loan payment has two parts: the first part pays the accruing interest on a loan, and the remainder goes towards the actual principal. Over time, the interest portion decreases as the loan balance decreases, and the amount going to actual principal increases so that the loan is paid off (amortized) in the specified time.

the process of paying off debt, usually by making monthly payments throughout the term of the loan. During the early yearly payments of the mortgage most of the payment amount made towards interest and little is paid towards the principal (the loan amount itself)

Repayment of your loan amount through regular payments of both principal and interest, calculated to pay off the loan after a fixed period of time.

The repayment of a mortgage loan by equal periodic payments to cover the principal and interest.

Reduction of the loan balance by applying each month principal payment is amortization.

The process of expense allocation applied to the cost expiration of intangible assets.

repayment of a mortgage debt in periodic payments over the length of the loan term. Payments usually include principal and interest.

The reduction of debt by regular payments of principal and interest over a period of time. The loan is amortized so that, with each payment the amount of interest paid decreases, and the amount of principal paid increases.

repayment of a debt in periodic installments of interest and principal over a period of time.

This is the process by which the interest on a loan is payable in periodic installments over the course of the loan.

Method used to calculate repayment of principal and interest over a given period of time.

(1) Accounting procedure which gradually reduces the book value of an intangible asset through periodic charges to income; similar to depreciation for fixed assets. See: Capitalize. (2) Method of reducing a taxpayer's cost basis in a bond purchased at a premium (vs. Accretion.) (3) Reduction of debt through periodic payments of principal - as in "self-amortizing" mortgages.

the process of repaying a loan that allows most of the payment at the beginning of the loan term to be applied to the interest on the loan, and most of the payment at the end of the loan term to be applied toward the principal.

Systematic apportionment of costs, loans principal, or other input to discrete periods of time such as months, years and so on. A fully amortized mortgage calls for constant periodic payment of principal and interest, so that the principal is fully amortized over the term of the mortgage. A partially amortized mortgage requires periodic payments of principal at selected points during the term. This balance is referred to as a balloon payment.

The gradual reduction of a debt by means of a regular payment. Repayments of principal and interest in "blended" amounts. The normal amortization period for a mortgage in Canada is 25 years, but can be as short as 5 years or as long as 25 years.

A loan which is calculated, including compounded interest, to be paid off completely in a certain number of years. Each monthly payment includes an amount applied to the interest and the balance applied to the principal.

A payment plan that reduces the debt of the borrower gradually through monthly payments of principal and interest.

Gradually reducing the loan amount to zero through regularly scheduled payments of principal and interest spread over a predetermined length of time.

Paying off a debt, such as a mortgage, by installments. The conventional amortization period for a mortgage is anywhere between 15 and 25 years. The shorter the amortization period, the less interest you have to pay.

The reduction of a loan or debt by periodic payments according to agreed upon terms. Your mortgage is being amortized every month that you send a payment to the lender.

Provision made in advance for the gradual reduction of an amount owed over time.

The reduction of debt through regular payments of principal which pay off a loan by its maturity date.

The repayment of a debt in a specified number of equal periodic installments that may include a portion of principal and accrued interest.

Repayment of a mortgage loan through scheduled monthly installments of principal and interest for a fixed period. The scheduled payment less the interest equals amortization. Over time, the interest portion decreases as the loan balance decreases, and the amount applied to principal increases.

An accounting procedure that gradually allocates the value of a limited-life or intangible asset through periodic charges to income; also, the reduction of debt through regular payments of principal sufficient to repay the loan over an established period.

The write-off of an amount spent for certain capital assets, similar to depreciation. This tax meaning is different from the common meaning of the term that describes, for example, payment schedules of loans.

The spreading out of an expense or debt over a period of time. Also, an accounting procedure that gradually reduces the cost value of an asset through periodic changes to income. Depreciation is the term used for fixed assets, and depletion is used to describe wasting assets such as natural resources.

The reduction and retirement of a debt through periodic payments of interest and principal.

The term by which a mortgage note is divided for repayment, i.e., 15 years, 30 years, etc.

a schedule of systematic loan payments that establishes the amount of payment to be applied to the principal and/or interest over a set period of time so that at the end of the period of time there is a zero balance.

The process of gradually repaying a debt with regularly scheduled payments.

Amortization is the process of reducing principal and interest in equal installment payments at specific intervals over a set term. Such payments must be sufficient to cover both principal and interest. Writing off an intangible asset investment over the

Literally meaning "kill off" (root mort) the outstanding balance of a loan by making regular payments (usually monthly). The payments are set up so that the borrower pays both interest and principal with each equal payment.

Number of years it takes to repay the mortgage and can be from 5-25 years.

Amortization is the gradual repayment of a debt over a period of time, such as monthly payments on a mortgage or credit card balance. To amortize a loan, your payments must be large enough not only to pay interest that has accrued but also to reduce the principal amount you owe. The word amortize itself tells the story, since it means "to bring to death."

The gradual payment of a debt through a schedule of payments or the writing off of an intangible asset against expenses over the period of its useful life.

The gradual reduction of a loan or other obligation by making periodic payments of principle and interest.

The number of years needed to fully repay a loan. Most mortgages are amortized over 25 years. This means that by making set monthly payments - each a blend of interest costs and repayment of the original principal - you'll have paid back the original amount and all the interest in 25 years. You can however choose different amortization periods. A shorter amortization, 15 or 20 years for example, will mean higher monthly payments, but a significantly lower interest cost. Do not confuse amortization with term.

The periodic principal paydown of a loan.

How the loan is paid over time. The P & I is determined in part by the Amortization Period (i.e. 30 years, 15 years, etc.)

Calculation to determine a regular-interval payment plan over time, with interest, to pay a set sum.

The reduction of a debt over time by making periodic payments (usually monthly) a portion of which is interest and a portion of which reduces the outstanding amount of the debt. The monthly mortgage payments remain the same over the life of the loan, even though the proportion of principal to interest changes over time. In the early part of the loan, principal repayment is very small and interest repayment very high; at the end of the loan, that relationship is reversed.

monthly mortgage loan repayments which includes principal and accrued interest; the installments are in a set amount (does not vary) and is calculated based on how long the mortgage loan is.

when applied to a loan, the period over which the principal and interest are repaid in full.

The liquidation of a financial obligation on an installment basis, which includes both principal and interest. Recovery of cost or value over a period of time. The method or plan for the payment of a debt, bond, deed of trust, etc., by installments or sinking fund. Back to the Top

The process of paying off the principal and interest on a loan by periodic installments.

Literally to "kill off" (root: mort) the outstanding balance of a loan by making equal payments on a regular schedule (usually monthly). The payments are structured so that the borrower pays both interest and principal with each equal payment.

A long term expense calculated on a monthly or periodic cost basis. A payment process by which the borrower gradually writes off the initial cost of an asset through payments of principal and interest.

A process whereby recurring periodic payments are calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.

Allocation and charge to expenses of the cost of intangible assets over their useful life. It also refers to the process of accounting for the reduction of debt through regular payments over a set time period and/or in accordance with a pre-determined schedule.

Accounting for expenses or charges as applicable rather than as paid. Includes such practices as depreciation, depletion, write-off of intangibles, prepaid expenses and deferred charges.

The period of time over which a loan is to be repaid, and the amount of each monthly payment.

The gradual reduction of a loan debt through monthly payments consisting of principal and interest.

Amortization means the method or the calculation by way of which the entire principal / loan amount is paid through the tenure of the loan. This helps a customer to know what his outstanding principal is at any point in time.

The process of eliminating debt by paying off a loan gradually with interest and principal payments.

Repayment of a loan in installments of principal and interest, rather than interest-only payments.

The process of separating payments into their principal and interest components. An amortized loan is one in which the principal amount of the loan is repaid in installments over the life of the loan, with each payment comprised partially of interest and partially of principal.

The calculation of the amount of the installment payment it takes to pay off the obligation at the end of a fixed period of time.

Regular scheduled repayment of a loan in equal installments of principle and interest.

A ratable deduction for the cost of intangible property over its useful life.

The length of time over which a loan will be retired in full, generally by way of monthy or weekly payments of principal and interest.

The repayment of a loan by making systematic payments that are applied to the loan's principal and interest over a set time period.

The gradual repayment of debt (usually monthly payments) over a period of time.

A gradual paying off of a debt by periodic installments which pay principal and interest.

Repayment of a debt in equal installments of principal and interest, calculated to pay off the loan by the maturity date.

Amortization of long-term assets, other than property, plant and equipment, so as to allocate the cost over their depreciable life. Amortization reduces the carrying value of the asset and reduces earnings but does not reduce cash.

Describes the gradual repayment of a loan in equal installments of principal and interest, as opposed to interest only payments.

(1) The portion of the cost of a limited-life or intangible asset charged as an expense during a particular period. (2) The reduction of debt by regular payments of principal and interest sufficient to retire the debt by maturity.

repayment of a mortgage debt with periodic payments of principal and interest, calculated to retire the obligation at the end of a selected period of time. An amortization schedule is a table showing the amounts of principal and interest due at regular intervals and the unpaid mortgage balance after each payment is made.

Payment of your mortgage through periodic payments covering both dept and accumulated interest.

To liquidate on an installment basis. It could be repaying of a loan or writing-off of expenditure over a period of time.

A gradual debt reduction of the amount borrowed. This is accomplished by making installment payments (usually monthly) according to a predetermined schedule.

Loan payments that include monthly interest payments plus some principle payments. The payment remains the same from month to month; however, over time, the amount paid towards interest will decrease and the amount paid towards the principle will increase.

The systematic reduction or writing off of an item over a specific number of time periods. Depreciation is a form of amortization.

The gradual elimination of debt through periodic payment. Pertains also to the write-off and expensing of assets classified as intangible, such as patents, copyrights, etc.

The period of time during which you will owe interest and principal to your lender.

continual process of reducing a debt according to a systematic plan.

Deductible expense allowed as a means of spreading the cost of an intangible asset over a period of years. For instance, if you pay points to take out a home equity loan and the loan proceeds are not used for home improvements, you cannot deduct all the points in the year paid. Instead, you divide the cost of the points by the length of the loan and deduct only the amount that applies to the current year.

Repayment of a loan towards principal and interest, calculated over a fixed time period

The gradual repayment of a home loan by periodic installments.

A repayment method in which the amount borrowed is repaid in regular, periodic installments of principal and interest.

Claimed on form 4562 and similar to depreciation, amortization is a way of writing off intangible assets, such as goodwill.

The gradual elimination of a liability (a loan), such as a mortgage through installed regular payments over a period of the estimated life of the asset on which the loan is made or secured. Such payments must be sufficient to cover both principal and interest. For fixed assets, depreciation is the allowance for wear-out. For natural resources, depletion is the allowance for the wasting away of the asset.

The gradual reduction of debt that occurs as loan payments are applied to loan principal and interest at a rate that repays the loan principal by the end of the loan term.

this is the period of time in which the loan principal and loan interest are paid off by making equal monthly payments. A portion of each mortgage payment is applied to the principal and the interest. As time goes on and as the principal amount outstanding is reduced, more of the monthly payment is applied towards the principal and less towards the interest. The period of amortization, the interest rate and the mortgage amount combine to determine the amount of the monthly mortgage payments.

Paying off a loan over the period of time and at the interest rate specified in a loan document. The amortization of a loan includes the payment of interest and a part of the amount borrowed in each mortgage payment.

Repayment of a loan with periodic payments of both principal and interest calculated to payoff the loan at the end of a fixed period of time.

Liquidation of a debt through installment payments.

The gradual repayment of a debt by means of partial payments on the principal at regular intervals. The amortization period is the time required to repay the debt completely.

The liquidation of a financial obligation through equal payments in regular installments.

Amortization is the reduction of a loan through periodic payments in which interest is charged only on the unpaid or remaining balance. We buy Run-Down, Beat-up Homes - sometimes real eyesores - for CASH

Amortization is the method of repaying a loan through small repayments occurring monthly or quarterly.

An Accounting procedure that gradually reduces the book value of an intangible asset through periodic charges to income.

The gradual elimination of a liability, such as a mortgage or other type of loan, in regular payments of principal and interest over a specified period of time.

The means by which a home loan is scheduled to be paid off, including interest and principal, by a series of regular installment payments. Loans are typically amortized over 30 years.

Write off over time of an intangible asset such as goodwill, patents, or copyrights..

The gradual reduction of the principal of a mortgage by scheduled installment payments.

Amortization is the repayment process of a mortgage loan through monthly installments including principal and interest. The monthly payment amount is based on on the terms of your mortgage.

The gradual reduction of debt through repayment of a loan by equal periodic installments of principal and interest.

Pay down of a mortgage or loan over a fixed period of time. Also, the diminution of intangible assets over time.

The gradual and systematic reduction of debt by equal periodic payments. Such payments generally must be sufficient to recompense current interest due during the repayment period and to repay the entire principal by the time the loan reaches maturity. An amortization schedule is a table that shows the amounts of principal and interest due at regular intervals, and the corresponding unpaid principal balance at the time each installment payment is made. See Also Debt, Interest, Principal.

The process of paying a debt in segments over a set period of time, with a portion of each payment going toward principal, a portion toward interest.

the process by which a loan balance decreases over time as principal payments are made

A method of equalizing the monthly mortgage payment over the life of the loan by adjusting the proportion of principal to interest over time. At first, the interest payment is high and the principal payment is low. At the end of the loan, interest payments are low and principal payments are high.

The schedule by which a home loan is paid in full, including interest and principal, in a series of regular installment payments. Loans are typically amortized over 15 or 30 years.

The gradual expensing of capital assets, such as plant and equipment, so as to allocate the cost over their depreciable life. Amortization reduces pre-tax income but does not reduce cash.

The gradual and periodic reduction of an amount over time. It can apply to either the periodic write-down of an asset (see depreciation) or a gradual extinguishment of a debt (payments reducing loan principal).

periodic charges against income to reflect the decline in value of an intangible asset.

In connection with financing, amortization is the regular repayment of a debt. In a full amortization contract, acquisition costs and other costs, including the lessor's borrowing costs, are recovered in full by payments by the lessee during the basic lease period. If only a partial redemption is attained during the term of the contract, this is called a partial amortization contract. With a partial amortization contract, full amortization by the lessor is only obtained by exercising a tender right vis-à-vis the lessee or by disposing of the leased object at a higher fair value to third parties (after the end of the lease contract). For terminable contracts, in case of termination, the lessee must make a balloon payment at the respective termination date. This normally results in full amortization.

The method of repayment whereby, the amount you borrow is repaid gradually though regular blended monthly payments of principal and interest. The first few years of payments is mostly applied toward the interest owed. In the final years of the loan, payment amounts are applied mostly to the remaining principal.

The repayment of a mortgage debt over a period of time in a series of periodic installments. It should be noted that a portion of each payment consists of a blend of interest and amortization of principal. Specifically, this is the payback of the principal portion of the loan owed to the lender. The effect of amortization is to build up the paper value of the owner's equity while reducing th e debt obligation.

The gradual repayment of a debt by periodic installments.

A payment method that involves paying off part of the principal along with the interest, instead of interest-only payments. Amortization can speed up loan payments and decrease the balance owed by keeping interest from accruing.

The gradual reduction of debt through a schedule of equal, periodic loan payments. Payments are calculated to meet current interest and to retire the principal at the end of a fixed period.

Act of liquidating an indebtedness by equal and periodic payments usually monthly; this direct reduction method means each payment remains constant but ratio of principal and interest changes with an increasing larger portion credited to reducing debt; savings and loan associations popularized method.

a periodic payment (usually monthly, may be bi-weekly, etc.) of a mortgage sufficient to pay off the debts (principal) after a specified time (usually 5-, 10-, 15-, 20-, 30- years) and all incurred and accrued interest on the outstanding balance of the loan. Payments remain constant (the same) if the mortgage is a fixed-rate mortgage.

When you reduce the size of your loan through regular, periodic payments. When you make monthly payments that cover both the principal and interest, you are amortizing the loan. On the other hand, interest-only payments delay amortization since you never fully pay off the mortgage.

Payment of a loan obligation in a series of installments or transfers.

The accounting procedure that companies use to write off intangible rights or assets â€” such as goodwill, patents or copyrights â€” over the period of their existence. For fixed assets the term used is depreciation. Both depreciation and amortization expenses are subtracted from a companyâ€(tm)s operating revenues to calculate net income.

The process of fully paying off your debt with installments on the principal and earned interest over a set time.

Writing off ("liquidating") the cost of an asset. It is typically called depreciation for plant assets, depletion for wasting assets (natural resources) and amortization for intangibles

Amortization is the method by which a mortgage loan is repaid. The monthly payment includes regular amounts that are applied to the principal balance of your loan, and amounts that are applied to the interest portion of your payment. Mortgage payments during the first years of repayment are generally applied mostly to the interest portion, with a small amount to principal. As the years pass, the amount of the monthly payment applied to principal increases, as the interest portion is repaid.

a mortgage payment plan whereby a portion of each payment is applied to the interest and the balance to reducing the principal, the result of which is that the loan if full re-paid within the specified term.

The process of paying off a loan by making regular periodic installment payments.

A generic term including depreciation, depletion, write-offs of intangibles, prepaid expenses, and deferred charges.

The repayment of all or a specified portion of the principal of the loan in periodic installments made during the term of the loan. Most home mortgage loans made by lenders are fully amortized, with the principal installments calculated in such a way that the borrowers monthly payment of principal and accrued interest remains level over the life of the loan.

The calculated schedule of mortgage payments, including the principal balance of the loan and projected interest to be accrued, which will allow the loan to be paid off by a specific date or the end of the term of the loan.

The number of years that you take to fully pay off your mortgage (not the same as your mortgage term). Amortization periods are often 15, 20, or 25 years long.

(1) The gradual reduction of a debt, through regular repayments of principal instalments and payment of current interest over an agreed period of time, so as to liquidate the debt.(2) In accounting, a term indicating the systematic writing off of an account or asset over its estimated life. See Depreciation. Français: Amortissement Español: Amortización

The calculation used to determine the amount of equal principal and interest payments needed to pay off a loan within a certain specified period of time. Most first mortgages are amortized over 15 - 30 years.

A monthly repayment schedule according to which a loan is repaid in fixed payments of principal and interest. For the first few years, most of each payment is applied toward interest. During the final years of the loan, payment amounts are applied almost exclusively to the remaining principal.

This is the length of time it takes to pay a loan off.

Amortization refers to the process of gradually paying down the principal of a loan. Each payment toward the principal reduces your loan by that amount. This is different than an interest-only loan payment where the principal balance is never reduced. Amortization for a mortgage loan in Canada is normally 25 years, but can be as few as 5 years.

Amortization is gradually reducing the amount owed on a loan by making regular payments on both the principal and interest.

The process of paying off a debt in installments over a given period of time without a final balloon payment.

The distribution of a monetary lump-sum over multiple smaller monetary installments, which include both a principal payment and an interest payment. In mortgage terms, positive amortization results in the entire loan eventually being paid in full. Negative amortization results in the borrower owing more in the future than they do in the present.

Repayment of a debt in equal installments of principal and interest, rather then interest-only payments.

The gradual reduction of a debt by periodic payments of interest and principal that are large enough to pay off a loan at maturity. The loan is repaid through regular, monthly payments of principal and interest paid for a predetermined amount of time.

The process of reducing an outstanding loan balance by making regular payments of principal and interest until the debt’s maturity. | | | B-C | | C-D | D-E | E-F | F-G | G-H | H-I

An accounting term used to describe the process of depreciating an asset over an arbitrary period of time. Amortization is often misapplied to billboards describing a government attempt to confiscate property (i.e remove outdoor advertising signs) without payment of just compensation. Also a term used in contracting for Bulletins wherein elements such as added embellishments are amortized over the period of contract.

The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time; such payments must be sufficient to cover both principle and interest.

The process of payment of a debt or mortgage loan over time by installments

The number of years it takes to repay the entire amount of a mortgage.

Regular payment of both principal and interest on a loan. Early in the loan, most of the payment is applied toward interest with increasing amounts paid toward principal and the loan moves toward maturity.

A fixed amount of monthly installments of principal and interest allowing you to own your home at the end of a specific time period (for example, 15 or 30 years).

The reduction of a loan by payments made at periodic intervals that repays debt of principal and interest.

A monthly repayment schedule which a loan is repaid in payments of combining principal and interest. For the first few years, most of each payment is applied toward interest. During the final years of the loan, payment amounts are mostly principal with some interest being paid.

The liquidation or gradual retirement of the financial obligation by means of systematic payments over a specific period of time. Also, recovery, over a period of time, of cost or value.

the gradual reduction of a debt by means of equal periodic payments to meet principal and interest

When a loan is repaid in equal payments at consistent intervals over the full term of the loan. This results in the complete payoff of the loan by the end of its term.

The period of time after which, if all periodic payments are made on time and in full, the loan will be paid out. Term may not be the same as amortization: a normal mortgage may be amortized over 25 years with just a five year term at which time the borrower has to re-finance.

The systematic allocation of the discount, premium, or issue costs of a bond to expense over the life of the bond; the systematic allocation of an intangible asset to expense over a certain period of time; the systematic reduction of a loan's principal balance through equal payment amounts which cover interest and principal repayment. To Top

The reduction of a debt by regular, usually monthly, installments of principal and interest. An amortization schedule is a table showing the payment, the amounts applied to interest and principal and the unpaid balance.

The process of recovering (via expensing) a capital investment over a period of time. See: capital recovery.

The number of years it would take to repay the entire amount of the mortgage loan.

1. The process of reducing a debt obligation through periodic payments which usually include both an interest a principal payment. 2. In accounting and/or tax, the spreading of the cost of an asset over its useful life for financial statement and/or tax purposes.

A schedule for repayment of a loan, including interest and principal, by regular installment payments. Mortgage loans are typically amortized over 15 to 30 years.

The process of gradually paying off a loan over time through scheduled payments of principal and interest.

Reducing the principle and interest on a loan with a payment plan that allows for equal payments to be made to the creditor at consistent intervals over the life of the loan (the amortization period). back

Repayment of a debt in periodic installments of principal and interest resulting in payment in full at the end of the loan term.

The schedule of loan payments that establishes the amount of payment to be applied to the principal and the amount to be applied to interest, usually on a monthly basis, for the full term of the loan.

Amortization is the process that reduces your loan balance by making monthly payments.

The process of calculating equal loan payments due that include principle and interest given a known loan amount, interest rate and time frame.

the process of conversion, such as converting testosterone to dihydrotestosterone.

The process of converting one enzyme to another, such as Testosterone to Dihydrotestosterone.

GFEâ— Prepayment Penalty

Discount Points Mortgagee

Amount of discount or premium that has been earned through the date of the transaction or report.