amortize

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Amortization

1. A tax deduction for the gradual consumption of the value of an asset, especially an intangible asset. For example, if a company spends $1 million on a patent that expires in 10 years, it amortizes the expense by deducting $100,000 from its taxable income over the course of 10 years. It is often used interchangeably with depreciation, which technically refers to the same thing for tangible assets.

2. The act of repaying a loan in regular payments over a given period of time.

amortize

To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. Likewise, an investor will usually amortize the premium each year on a bond purchased at a price above its principal.
References in periodicals archive ?
The aggregate principal balance of this pool is $70,099,658 and consists of conventional, fully amortizing, adjustable-rate mortgage loans secured by first liens on single-family residential properties, substantially all of which have original terms to maturity of 30 years.
The aggregate principal balance of this pool is $57,087,434 and consists of conventional, fully amortizing, adjustable-rate mortgage loans secured by first liens on single-family residential properties, substantially all of which have original terms to maturity of 30 years.
Group III consists of 1,393 conventional, fully amortizing, adjustable-rate mortgage loans secured by first liens on single-family residential properties with an aggregate principal of $548,656,247.
Group 2 consists of 440 conventional, fully amortizing, adjustable-rate mortgage loans secured by first liens on single-family residential properties, with an aggregate principal of $187,573,765.
Chartered issued an initial principal amount of approximately US$47 million of Amortizing Bonds.
The Amortizing Bonds will constitute senior, unsecured obligations of Chartered.
The aggregate principal balance of this pool is $121,015,348 and consists of conventional, fully amortizing, adjustable-rate mortgage loans secured by first liens on single-family residential properties, substantially all of which have original terms to maturity of 30 years.
Fitch recently completed a historical analysis of over 65,000 negatively amortizing loans from 1994 through last year to understand when and for how long borrowers choose to incur negative amortization and their likelihood to incur payment shock at recast.
The aggregate principal balance of this pool is $54,554,340 and consists of conventional, fully amortizing, adjustable-rate mortgage loans secured by first liens on single-family residential properties, substantially all of which have original terms to maturity of 30 years.
Pool 1 consists of conventional, fully amortizing, adjustable-rate mortgage loans secured by first liens one- to four-family residential properties, substantially all of which have original terms to maturity of 30 years.
As of the cut-off date pool I consists of conventional, fully amortizing, 30-year fixed-rate mortgage loans secured by first liens on one- to four-family residential properties, with an aggregate principal balance of $234,976,316.
Group 1 consists of 1,119 conventional, fully amortizing, fixed-rate mortgage loans with an aggregate principal of $365,217,534.