Real Estate Finance

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 regular payment made by a borrower to a creditor in order to repay a debt

• The government allocated a significant portion of the budget towards debt service payments.
• I have to make sure I budget enough for debt service each month.
• I'm drowning in debt service payments.
• Paying off my debt service feels like climbing a mountain.

noun the interest rate used in discounted cash flow analysis to determine the present value of future cash flows

• The company is considering adjusting the discount rate for their bonds.
• I heard they might lower the discount rate for the sale next week.
• Yo, did you hear they're gonna hook us up with a lower discount rate?
• She always approaches life with a high discount rate, never settling for less than she deserves.

noun patient self-control; restraint and tolerance

adjective forbearing or tolerant

• The bank granted a period of forbearance to the struggling business owner.
• I appreciate your forbearance while I figure out the best solution.
• Dude, show some forbearance and stop nagging me about it.
• In the face of adversity, she showed remarkable forbearance and resilience.

noun a legal claim or right on a property or asset that is used as security for the payment of a debt or obligation

• The bank placed a lien on the property due to unpaid debts.
• They couldn't sell the car because there was a lien on it.
• I had to deal with getting a lien removed from my credit report.
• Emotional baggage can be like a lien on your happiness, weighing you down.

noun accelerated amortization is a method of paying off a loan more quickly than the scheduled repayment plan

• The company decided to implement an accelerated amortization schedule to pay off the loan sooner.
• We're going with accelerated amortization to get rid of the debt faster.
• Let's speed up the loan repayment with accelerated amortization.
• Using accelerated amortization is like hitting the fast-forward button on our loan payments.

noun a type of mortgage loan where the interest rate can change periodically based on changes in a specified financial index

• Many homeowners choose an adjustable rate mortgage because it offers a lower initial interest rate compared to a fixed-rate mortgage.
• I heard that an adjustable rate mortgage might be a good option for people looking to save money on their monthly payments.
• Yo, my cousin just got an ARM and now his mortgage payments are way lower.
• An adjustable rate mortgage is like a rollercoaster for your finances, with unpredictable twists and turns in interest rates.