Amortization
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Amortization
Amortization means Writing off of the assets of a company over a number of years, not necessarily depending on the life of the assets, for the purpose of their replacement of renewal. It is different from depreciation, which is periodic writing off of the asset based on its normal life expectany. Amoritization is usually accompanied by putting aside money in a SINKINGFUND, so that the considerably increased cost of replacement or modernization can be met, when it is needed. The process of fully paying off indebtedness by installments of principal and earned interest over a definite time.
Amortization Schedule - A schedule showing each payment of a loan to be amortized and breaking down the payment into the amount applied to principal and the amount applied to interest.
Amortization Period - The actual number of years it will take to repay the mortgage in full. Most mortgages are amortized over 25 years. Making the set monthly payments for 25 years will pay back the principal and interest in full. It is possible to select shorter amortization periods. Choosing a shorter amortization of 15 or 20 years for example, will mean higher monthly payments, but a significantly lower interest cost.
Amortization Table - A Mathematical formula for calculating a borrower's monthly payments, based on the amount borrowed, the interest rate and the term of the loan
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
Trading Terms - A
Active Share. A-D Index or Advance-Decline Index, After-Tax , Aging Schedule, Annual General Meeting, Amortization, Annual Report , Application Money, Asset.. More
Trading Terms - B
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