Amortize - Law Dictionary Search Results
Home Dictionary Name: amortizenegative amortization
negative amortization amortization means that monthly payments are large enough to pay the interest and reduce the principal on your mortgage. Negative amortization occurs when the monthly payments do not cover all of the interest cost. The interest cost that isn't covered is added to the unpaid principal balance. This means that even after making many payments, you could owe more than you did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results in monthly payments not high enough to cover the interest due. Source: U.S. Department of Housing and Urban Development ...
amortization
amortization The gradual payment of a debt through a schedule of payments or the writing off of an intangible asset against expenses over the period of its useful life ...
amortize
amortize -tized -tiz·ing : to reduce (an amount) gradually: as a : to pay off (as a loan) gradually usually by periodic payments of principal and interest or payments to a sinking fund b : to gradually reduce the cost of (as an asset) esp. for tax purposes by making periodic charges to income over a time span [ the machinery over five years] see also depreciation compare capitalize, deduct amor·ti·za·ble adj amor·ti·za·tion [a-mər-tə-zā-shən, ə-mȯr-] n ...
Amortization, or Amortizement
Amortization, or Amortizement. See ADMORTIZA-TION....
Amortize
Amortize, to alienate lands in mortmain....
balloon
balloon : being or having a final installment that is much larger than preceding ones in an installment or term loan [a payment] NOTE: In contrast to an amortized loan, a balloon loan is generally repaid in periodic payments of interest and a large, lump sum payment of principal at the end of the term. ...
cap
cap a limit, such as one placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can increase or decrease, either at each adjustment period or during the life of the mortgage. Payment caps do not limit the amount of interest the lender is earning, so they may cause negative amortization. Source: U.S. Department of Housing and Urban Development ...
capitalize
capitalize -ized -iz·ing 1 a : to convert into capital [ the company's earnings] b : to treat as a capital expenditure rather than an ordinary and necessary expense [the cost of the merger must be capitalized] 2 a : to compute the present value of (an income extended over a period of time) compare amortize b : to convert (a periodic payment) into an equivalent capital sum [capitalized annuities] 3 : to supply capital for [had capitalized the business with her own savings] ...
collateralized mortgage obligation
collateralized mortgage obligation : a bond collateralized by a pool of mortgage obligations or pass-through securities and paid according to the maturity and amortization schedule of its class and not directly from the underlying obligations called also CMO see also remic compare pass-through security at security, tranche ...
deduct
deduct : to take away (an amount) from a total ;specif : to take as a deduction [must be capitalized…rather than immediately ed "D. Q. Posin"] compare amortize ...
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