• user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:4048b1fbed23ad22ecb63442436677e3' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h1>Amortization</h1>', created = 1566591276, expire = 1566677676, headers = '', serialized = 0 WHERE cid = '1:4048b1fbed23ad22ecb63442436677e3' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:0313e037a5b06f8aa15363caf956bf7a' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<strong>Amortization</strong>, in its most common usage, references the gradual repayment of debts over a specified time period.&nbsp; The term is most commonly used when referencing mortgage repayment terms and refers to the repayment of pricipal and interest.<br /><br /><h2>Amortization &amp; Loan Repayment</h2><br />The amount of the payment that will be required each period will depend on the amortization schedule that is chosen.&nbsp; For instance, a 30 year amortization schedule will spread the principal repayment and interest charges over a 360 period term.&nbsp; An <a href=\"/personal-finance/amortization-table.html\">amortization schedule</a> will show you how much principal and interest is being applied to each payment as time moves forward.&nbsp; Remember, you can only be charged interest on the outstanding loan balance; therefore, as your outstanding principal balance comes down over time, so do the interest payments.&nbsp; You may ask, why does my monthly payment not move lower then?&nbsp; By design, the amortization schedule reduces your outstanding principal balance at an accelerated rate as you continue to make payments.&nbsp; Basically, the amount of periodic interest savings will applied to your principal balance.<br /><br />If you would like to understand how your payments would break down; we have a great calculator which will do all the work for you.<br /><br /><a href=\"/files/spreadsheets/loan-amortization-table-mysmp.xls\">Click Here For Amortization Calculator</a><br /><br /><h2>Amortization &amp; Asset Write Offs</h2><br />Amortization can also be used in the context of business tax write-offs.&nbsp; Amortization in this sense refers to the expensing of <a href=\"/fundamental-analysis/capex.html\">capital expenses</a> over their expected useful lives.&nbsp; Amortization can only be used in the context intangible assets such as patents, copyrights, or intellectual property; however, there are certain items such as goodwill which do not have any definite lifespan and therefore will not be subject to amortization.<br /><br />In accounting terms, amortization reduces the assets carrying value on the <a href=\"/fundamental-analysis/balance-sheet.html\">balance sheet</a> and adds as an expense on the income statement.<br /><br />When you talk about physical assets such as machinery or office space, the appropriate terminology for expensing these assets is <a href=\"/fundamental-analysis/depreciation.html\">depreciation</a>.', created = 1566591276, expire = 1566677676, headers = '', serialized = 0 WHERE cid = '1:0313e037a5b06f8aa15363caf956bf7a' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:2fda152348bc4ae73408bf0b82608e9a' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide to navigating through the markets.</p><p>Tim is in the Timers Digest Top 10 Rankings for his newsletter and is the Author of \"The Secret Science of Price and Volume”. Ord also contributes to the Stocks &amp; Commodities Magazine.</p>', created = 1566591276, expire = 1566677676, headers = '', serialized = 0 WHERE cid = '1:2fda152348bc4ae73408bf0b82608e9a' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:4dd69529abed14a5c1c8f3ba7e22f8eb' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for every symbol on the Nasdaq, NYSE, and AMEX.</p><p>Use the fast forward and pause features to analyze your trading decisions with more precision.</p>', created = 1566591276, expire = 1566677676, headers = '', serialized = 0 WHERE cid = '1:4dd69529abed14a5c1c8f3ba7e22f8eb' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:151e49b034b3ac8a98c1331980da8b69' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>Related Videos</h2>', created = 1566591276, expire = 1566677676, headers = '', serialized = 0 WHERE cid = '1:151e49b034b3ac8a98c1331980da8b69' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:e6ff5fe7efa34d641d697991ec512c61' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>Related Articles</h2>', created = 1566591276, expire = 1566677676, headers = '', serialized = 0 WHERE cid = '1:e6ff5fe7efa34d641d697991ec512c61' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '4:64dc950e564b7bb494892459d2858add' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<div class=\"left\">\n <p>copyright &copy; 2011 MYSMP.com. All rights reserved.</p>\n <a href=\"/\">Home</a> • <a href=\"/advertise\">Advertise</a> • <a href=\"/sitemap\">Sitemap</a> • <a href=\"/privacy-policy\">Privacy Policy</a>\n</div>\n\n<div class=\"right\">\n <p>Designed &amp; Developed by: bxCreative.com: <a target=\"_blank\" href=\"http://bxcreative.com\">Web design</a></p>\n</div>', created = 1566591276, expire = 1566677676, headers = '', serialized = 0 WHERE cid = '4:64dc950e564b7bb494892459d2858add' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:ef414e50ef3bcd60831c79a8ccac7f37' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2 class=\"pane-title\"><a href=\"/investment-articles\">Investment Articles</a></h2><h2 class=\"pane-title\"><a href=\"/premium-services\">Premium Services</a></h2> <h2 class=\"pane-title\"><a href=\"/free-offers\">Free Offers</a></h2> <h2 class=\"pane-title\"><a href=\"/video\">Videos</a></h2>', created = 1566591276, expire = 1566677676, headers = '', serialized = 0 WHERE cid = '1:ef414e50ef3bcd60831c79a8ccac7f37' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:7ab206dca588aa9858fab14b55f27503' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>16192 Coastal Highway<br />\nLewes, Delaware 19958</p>\n', created = 1566591276, expire = 1566677676, headers = '', serialized = 0 WHERE cid = '1:7ab206dca588aa9858fab14b55f27503' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:fb9bc3d8197c3f70b5a896cc8bae29d6' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<a href=\"/\"><img src=\"/sites/all/themes/bx/images/logo.png\" /></a>', created = 1566591276, expire = 1566677676, headers = '', serialized = 0 WHERE cid = '1:fb9bc3d8197c3f70b5a896cc8bae29d6' in /var/www/html/mysmp/includes/cache.inc on line 109.

Amortization

Amortization, in its most common usage, references the gradual repayment of debts over a specified time period.  The term is most commonly used when referencing mortgage repayment terms and refers to the repayment of pricipal and interest.

Amortization & Loan Repayment


The amount of the payment that will be required each period will depend on the amortization schedule that is chosen.  For instance, a 30 year amortization schedule will spread the principal repayment and interest charges over a 360 period term.  An amortization schedule will show you how much principal and interest is being applied to each payment as time moves forward.  Remember, you can only be charged interest on the outstanding loan balance; therefore, as your outstanding principal balance comes down over time, so do the interest payments.  You may ask, why does my monthly payment not move lower then?  By design, the amortization schedule reduces your outstanding principal balance at an accelerated rate as you continue to make payments.  Basically, the amount of periodic interest savings will applied to your principal balance.

If you would like to understand how your payments would break down; we have a great calculator which will do all the work for you.

Click Here For Amortization Calculator

Amortization & Asset Write Offs


Amortization can also be used in the context of business tax write-offs.  Amortization in this sense refers to the expensing of capital expenses over their expected useful lives.  Amortization can only be used in the context intangible assets such as patents, copyrights, or intellectual property; however, there are certain items such as goodwill which do not have any definite lifespan and therefore will not be subject to amortization.

In accounting terms, amortization reduces the assets carrying value on the balance sheet and adds as an expense on the income statement.

When you talk about physical assets such as machinery or office space, the appropriate terminology for expensing these assets is depreciation.
Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

Tradingsim.com
Day Trading Simulator

Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

Send this article to a friend.

Enter multiple addresses on separate lines or separate them with commas.