Definition of amortize
1 : to pay off (an obligation, such as a mortgage) gradually usually by periodic payments of principal and interest or by payments to a sinking fund amortize a loan
2 : to gradually reduce or write off the cost or value of (something, such as an asset) amortize goodwill amortize machinery
amortizableplay \-ˌtī-zə-bəl\ adjective
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Recent Examples of amortize from the Web
PEI said the pending deal involves a $30 million cash payment and $46 million to be paid via non-amortizing secured promissory notes due 18 months from closing.
To this day, most mortgage shoppers are not aware that balloon payments, prepayment penalties, negative amortizing loans, and no-qualifiers are all banned.
Peter Fisher, a former Treasury Undersecretary who’s a supporter of ultra-long bonds, said they could be made more appealing by having their principal amortized over part or the entire life of the bonds, as mortgage loans do.
Writers’ pay is being amortized over longer periods of time, effectively lowering their per-week pay.
By offering a low-wage platform, Mexican plants increased the scale of production in North America, allowing domestic and foreign automakers to amortize their large fixed costs.
Its costs for bandwidth are then amortized across the life of its fiber and routers.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'amortize.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Did You Know?
When you amortize a loan, you "kill it off" gradually by paying it down in installments. This is reflected in the word's etymology. Amortize derives via Middle English and Anglo-French from Vulgar Latin admortire, meaning "to kill." The Latin noun mors ("death") is a root of "admortire"; it is related to our word murder, and it also gave us a word naming a kind of loan that is usually amortized: "mortgage." "Amortize" carries a different meaning in the field of corporate finance, where it means to depreciate the cost or value of an asset (as, for example, to reduce interest revenue on that asset for tax purposes).
Origin and Etymology of amortize
AMORTIZE Defined for English Language Learners
Definition of amortize for English Language Learners
business : to pay money that is owed for something (such as a mortgage) by making regular payments over a long period of time
Legal Definition of amortize
: 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) especially for tax purposes by making periodic charges to income over a time span amortize the machinery over five years — see also depreciation — compare capitalize, deduct
amortization\ˌa-mər-tə-ˈzā-shən, ə-ˌmȯr-\ play noun
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