amortize v : liquidate gradually [syn: amortise]

Amortize \A*mor"tize\, v. t. [OE. amortisen, LL. amortisare, admortizare, F. amortir to sell in mortmain, to extinguish; L. ad + mors death. See Mortmain].
1. To make as if dead; to destroy. [Obs.] --Chaucer.
2. (Law) To alienate in mortmain, that is, to convey to a corporation. See Mortmain.
3. To clear off or extinguish, as a debt, usually by means of a sinking fund.

See more meaning on Amortize...

Amortization (or amortisation) is the process of decreasing, or accounting for, an amount over a period. The word comes from Middle English amortisen to kill, alienate in mortmain, from Anglo-French amorteser, alteration of amortir, from Vulgar Latin admortire to kill, from Latin ad- + mort-, mors death.

When used in the context of a home purchase, amortization is the process by which your loan principal decreases over the life of your loan. With each mortgage payment that you make, a portion of your payment is applied towards reducing your principal and another portion of your payment is applied towards paying the interest on the loan. An Amortization table shows this ratio of principal and interest and demonstrates how your loan's principal amount decreases over time.

Amortization is generally known as depreciation of intangible assets of a firm.

• Is j2 Global, Inc. (JCOM) Properly Amortizing their Customer Relationships? - valuewalk.com
  Just how significant are changes to the amortization period for customer relationships? Well lengthening the time over which you amortize something reduces the expenses you recognize each year. As an exercise in comparison we show what JCOM’s earnings ... Read more on this news related to 'Amortize'
• Freddie Mac: Refinancing Homeowners Pick Fixed Rates, Shorter Terms - MortgageNewsDaily.com
  Homeowners who refinanced through Freddie Mac in the first quarter of 2012 overwhelmingly picked fixed rate loans and 31 percent chose new loans that would amortize in a shorter period than the old loan. The information came Monday from Freddie ... Read more on this news related to 'Amortize'
• The Disruptive Business Model that Could Change the Tablet Market - PC Magazine
  They basically subsidize the upfront cost of the phone and earn back this cost by tying a user to a two-year service contract to amortize their cost of the iPhone to Apple. In fact, carriers have been using this subsidization model to sell phones for a ... Read more on this news related to 'Amortize'