AMORTIZATION

amortization

amortization (am-[schwa]r-t[schwa]-zay-sh[schwa]n), n. 1. The act or result of gradually extinguishing a debt, such as a mortgage, usu. by contributing payments of principal each time a periodic interest payment is due. negative amortization. An increase in a loan’s principal balance caused by monthly payments insufficient to pay accruing interest. 2. The act or result of

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