A home warranty is a service contract that covers the repair or replacement of important home system components and appliances that break down over time. A home warranty can help save you money. Breakdowns are inevitable â home system components and appliances simply wear out over time.
DEFINITION of 'Amortization'. 1. The paying off of debt with a fixed repayment schedule in regular installments over a period of time. Consumers are most likely to encounter amortization with a mortgage or car loan. 2. The spreading out of capital expenses for intangible assets over a specific period of time (usually over the asset's useful life) for accounting and tax purposes. Amortization is similar to depreciation, which is used for tangible assets, and to depletion, which is used with natural resources.
Full Definition of AMORTIZE. transitive verb. 1. : to pay off (as a mortgage) gradually usually by periodic payments of principal and interest or by payments to a sinking fund. 2.â amÂ·orÂ·tizÂ·able \-ËtÄ«-zÉ-bÉl\ adjective.See amortize defined for English-language learners. ADVERTISEMENT.ull Definition of AMORTIZE. transitive verb. 1. : to pay off (as a mortgage) gradually usually by periodic payments of principal and interest or by payments to a sinking fund. 2. â amÂ·orÂ·tizÂ·able \-ËtÄ«-zÉ-bÉl\ adjective. See amortize defined for English-language learners.