noun
definition
The reduction of loan principal over a series of payments.
definition
The distribution of the cost of an intangible asset, such as an intellectual property right, over the projected useful life of the asset.
Examples of amortization in a Sentence
Here, individuals learn how amortization spreadsheets work.
The lower goodwill amortization charge in 2005 reflects the goodwill impairment charge taken in 2004.
This is a preferable method for many because the interest rates are generally low and the amortization is long, allowing borrowers to steadily pay down the debt for smaller amounts monthly.
A mortgage amortization calculator gives you the rate at which your home is building equity.
The principal adjustments are made in respect of rationalization costs, the impairment of goodwill and the amortization of acquired intangibles.
Earnings per share, before amortization of acquisition-related intangibles and restructuring charges, are expected to be $ 0.26.
There has been no new non-marketable borrowing since the 1980s, and the debt is being gradually repaid under fixed amortization schedules.
This is referred to as amortization, and could be as little as five years or as many as thirty.
Additionally, homeowners who enjoy their tax breaks should take the IRS amortization schedule into consideration.
Potential first-time buyers should make an attempt to understand the way interest rates work with home loans, in addition to obtaining some knowledge regarding the basic amortization structure of home loans.
Apply for a fixed rate mortgage with the shortest amortization you can afford, because this will avoid any rude surprises from sudden interest rate increases.
Use the amortization calculator below to find out how much you can expect to pay for your monthly mortgage payment based on the amount you borrow.
The best fixed rate mortgage has as few fees as possible and has the shortest amortization, allowing you to comfortably make monthly payments without putting a dent into your lifestyle.
A mortgage amortization table is a valuable tool for homeowners and those who are thinking about buying a home.
Reading a mortgage amortization table will show you how much of the principal will remain on your mortgage at the end of each year the mortgage runs.
Another interesting bit of information contained in a mortgage amortization table is the total amount of interest you will pay for the privilege of owning a home with a mortgage.
You can also use a mortgage amortization table to find out what the impact of any extra payments will be on your mortgage.
It can be hard to figure out how a mortgage gets paid off over time without first viewing samples of amortization schedules.
There is no lack of amortization schedule samples available on the Web.
Yahoo Real Estate - This bare bones calculator creates samples of amortization schedules that include property taxes, Private Mortgage Insurance (PMI) and hazard insurance.
Microsoft Office Online - This site offers an amortization schedule template that users can open up as an Excel spreadsheet.
It is suitable for someone who, for whatever reason, just wants to know what an amortization schedule is and what it looks like.
These schedules can also be very helpful for people with adjustable rate mortgages, since they can print out new amortization schedules as their rates change.
Real estate agents can also use sample amortization schedules to help potential buyers who are not sure what their price range should be.
No matter how a sample amortization schedule is used, it's important to realize that mortgage rates are not set in stone until the home buyer signs on the dotted line, no matter what the sample schedule says.
Amortization spreadsheets contain long, complex calculations.
The most common amortization spreadsheets are those from Excel.
Using amortization spreadsheets can really give you a look at how expensive a mortgage can be to the average homeowner, even if the interest rate is low.
Use an amortization spreadsheet to find out how much monthly payments will be.
Use amortization schedules to determine if refinancing your home is a good investment.
This includes a balloon payment calculator spreadsheet and a simple interest Excel amortization spreadsheet.
Sometimes the data from the amortization chart is also plotted on a line graph with the x axis representing time and the y axis representing the dollar amount.
It can be difficult to understand what an amortization chart is without actually seeing one.
Vertex42.com provides examples of both the traditional amortization chart and the line chart.
The Federal Reserve Board's site has an image of an amortization bar chart that gives another visual take on the difference between principal payments and interest payments.
It is also easy to create your own customized amortization schedule.
The Internet offers many options for websites with amortization schedules.
Many of the sites have free, printable amortization tables.
It is not difficult to find amortization schedules.
You can create your own straight line amortization chart with an Excel spreadsheet.
Mortgage-x.com - This website has a very large selection of amortization schedules covering many types of mortgage loans.
Schedules range from a very simple 30-year Amortization Schedule to a more complex Pay Option ARM Amortization Calculator.
You do not have to pay to receive an accurate, easy-to-read amortization schedule.
A simple interest amortization schedule is useful when calculating simple interest on large loans, such as mortgage and auto loans.
Amortization schedules offer many benefits to borrowers.
Amortization schedules are not an efficient tool for tracking variable rate mortgages, but they work very well for fixed interest rates.
However, any time you alter from your payment plan by paying extra or skipping a payment, you change the amortization schedule.
It is extremely difficult to create and maintain hard copy simple amortization schedules.
Because of this, nearly everyone relies on virtual spreadsheets to calculate and adjust their simple interest amortization schedule.
Vertex42 offers a free, downloadable amortization schedule for Excel.