Definitions

1. verb

to pay off a debt, especially a mortgage, by regular payments over a period of time

“The homeowners will amortize their loan over 30 years with monthly payments.”

2. verb

to reduce the value of something, especially a financial asset, by spreading its cost over time

“The company will amortize the costs of the new equipment over several years.”

3. noun

a payment or charge made to reduce the amount of a debt, especially a mortgage

“The mortgage amortization will be included in the monthly payment.”