Definitions (2)

1. The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time. Such payments must be sufficient to cover both principal and interest.

Use amortization in a sentence

The soon to be homeowners talked about their amortization rate and where they would be in ten years from now.

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You should try to make sure that you are doing well with amortization so that you are not taking on to much risk.

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In the early twentieth century, major department stores began to offer amortization-based loans on their products to attract lower and middle class customers who previously thought that the products were out of their price range.

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FFO amortization of premium