# What is amortization?

Amortisation is a procedure of paying off a loan via structured and periodic payments. The loan is to be paid in regular instalments. A certain portion of your income is allocated to paying off this loan so that it is fully paid in the required time frame.
What Is Amortization?
Amortization is useful information for both individuals and businesses. Individuals primarily use amortization schedules to help determine their loan repayment on home mortgages. Businesses use amortization to defer costs of certain assets or asset... More »
Difficulty: Easy
Source: www.ehow.com
Amortisation is the practice through which the mortgage debt is paid off through regular payments over a period of time, usually dwindling as payments are made to the lender.
Jon Fisher
In the business world, amortization is defined as the distribution of what would otherwise be a single, substantial sum of money into various other smaller money sums. The amortization schedule would be the schedule in which these smaller sums of money will be distributed. In consideration to other repayment models, the amortization repayment schedule will consist of both principal and interest and is generally used in loan repayment set-ups.
Q&A Related to "What is amortization"
 1. Calculate your loan's term in months (N). Multiply your loan's term in years by 12. 2. Calculate your monthly interest rate (R) and convert into decimal format. Divide your annual http://www.ehow.com/how_8146904_amortize.html
 Amortization is when you gradually reduce a liability over time. An example of amortization is when you pay off a loan over a period of months or years. http://answers.ask.com/Business/Real_Estate/what_d...
 Negative amortization, or NegAm, occurs when the amount paid on a loan is less than the interest charged, resulting in an increase in the amount owed. Obviously, this is not a good http://answers.ask.com/Business/Real_Estate/what_i...
 The definition of amortization is the paying off of debt and/or the the deduction of capital expenses. This is done by an amortization schedule, a table that explains each payment http://answers.ask.com/Business/Real_Estate/what_i...
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The difference between amortization and depreciation is that amortization has to do with intangible assets; whereas, tangible assets depreciate. Assets that cannot ...
The concepts of depreciation and amortization refer to two things. Depreciation is simply of the decline in the value of an object or asset due to age. Amortization ...