Definitions

  • Accumulated Amortization Definition. What is the accumulated amortization definition? Accumulated amortization definition states that this kind of amortization represents the amount of amortization expense that has been claimed since the acquisition of the asset. Accumulated Intangible Amortization represents accumulated amortization against intangible fixed assets.
  • Refinancing Definition. What does ‘Refinancing‘ mean? Mortgage Refinance Definition: Mortgage refinance implies getting a loan in order to pay off an outstanding loan. Both loans will be secured with the same asset thus the repayment is done immediately and the loan amount can’t be used for other purposes.
  • Negative Amortization Definition. What does negative amortization mean? Negative amortization, also known as NegAm, occurs whenever the loan payment for any period is less than the interest charged over that period so that the outstanding balance of the loan increases.
  • Amortization Schedule Definition. What does ‘Amortization Schedule’ mean? Amortization Schedule – A complete schedule of periodic blended loan payments, showing the amount of principal and the amount of interest that comprise each payment so that the loan will be paid off at the end of its term.
  • Amortization Definition. What does ‘Amortization’ mean? Amortization refers at the process of paying off a debt (often from a loan or mortgage) over time through regular payments. A portion of each payment is for interest while the remaining amount is applied towards the principal balance. The percentage of interest versus principal in each payment is determined in an amortization schedule.
  • Home Equity Loan. What is a Home Equity Loan? A Home Equity Loan is a loan secured by a primary residence or second home to the extent of the excess of fair market value over the debt incurred in the purchase. A home equity loan creates a lien against the borrower’s house, and reduces home equity.