amortization
Calculating the repayment of a loan over a fixed period of time. This typically results in equal periodic payments of both principal and interest. For example, if a loan that totals $12,000 including principal and interest is amortized over one year with twelve (12) monthly payments, then the monthly periodic payment would be $1,000 per month.
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The following dictionary definition list is provided for clarification only. Note that many definitions are not directly applicable to mortgages, loans or other financial terminology in this glossary. Used with permission: WordNet 2.1 Copyright 2005 by Princeton University. All rights reserved.
amortization
Noun: amortization, amortisation (the reduction of the value of an asset by prorating its cost over a period of years)
Noun: amortization, amortisation (payment of an obligation in a series of installments or transfers)
- amortization -
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