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GLOSSARY: Enter search term:
Browse dictionary by letter: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Glossary Term: AMORTIZATION

Definition(s) for AMORTIZATION:


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

2. ) 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.

3. ) 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)


See Also:
AMORTIZATION PERIOD, EARLY AMORTIZATION EVENT, LEVEL FACTOR AMORTIZATION, NEGATIVE AMORTIZATION, PLANNED AMORTIZATION CLASS (PAC) TRANCHE, TARGETED AMORTIZATION CLASS(TAC) TRANCHE, AMORTIZATION FACTOR, LOAN AMORTIZATION SCHEDULE, PLANNED AMORTIZATION CLASS (PAC), TARGETED AMORTIZATION CLASS(TAC) BONDS, PAC (PLANNED AMORTIZATION CLASS) TRANCHE, EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA), NEGATIVE AMORTIZATION, NEGATIVE AMORTIZATION, NEGATIVE AMORTIZATION


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