Loan Terminology

verb to gradually reduce or write off the cost or value of an asset over a period of time

• The company plans to amortize the cost of the new equipment over the next five years.
• I'm going to amortize the cost of my new laptop by using it for work.
• I'll just spread out the payments to amortize the cost of the car.
• She tried to amortize the emotional impact of the breakup by focusing on her career.

noun a legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

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• The couple applied for a mortgage to buy their first home.
• They took out a mortgage to buy the house.
• They got a home loan to purchase the property.
• The burden of the mortgage weighed heavily on their finances.