Amortization

Business / Real Estate / Amortization: The gradual repayment of a debt by means of systematic payments of principal and/or interest over a set period, so that at the end of the period there is a zero balance. The principal is thus directly reduced or amortized over the life of the loan. Some loans are not fully amortized, and require a balloon payment at the end of the term of the loan.

Effective-Interest Amortization

Business / Accounting / Effective-Interest Amortization: A method of systematically writing off a bond premium or discount that takes into consideration the time value of money and results in an equal rate of amortization for each period. MORE

Negative Amortization

Business / Finance / Negative Amortization: A loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amor MORE

Amortization Factor

Business / Finance / Amortization Factor: The pool factor implied by the scheduled amortization assuming no prepayments. MORE

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