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Mortgage vs Amortization - What's the difference?

mortgage | amortization |

As nouns the difference between mortgage and amortization

is that mortgage is (legal) a special form of secured loan where the purpose of the loan must be specified to the lender, to purchase assets that must be fixed (not movable) property such as a house or piece of farm land the assets are registered as the legal property of the borrower but the lender can seize them and dispose of them if they are not satisfied with the manner in which the repayment of the loan is conducted by the borrower once the loan is fully repaid, the lender loses this right of seizure and the assets are then deemed to be unencumbered while amortization is the reduction of loan principal over a series of payments.

As a verb mortgage

is (legal) to borrow against a property, to obtain a loan for another purpose by giving away the right of seizure to the lender over a fixed property such as a house or piece of land; to pledge a property in order to get a loan.

mortgage

English

Noun

(en noun)
  • (legal) A special form of secured loan where the purpose of the loan must be specified to the lender, to purchase assets that must be fixed (not movable) property such as a house or piece of farm land. The assets are registered as the legal property of the borrower but the lender can seize them and dispose of them if they are not satisfied with the manner in which the repayment of the loan is conducted by the borrower. Once the loan is fully repaid, the lender loses this right of seizure and the assets are then deemed to be unencumbered.
  • (obsolete) State of being pledged.

    • Derived terms

    * anaconda mortgage

    Verb

    (mortgag)
  • (legal) To borrow against a property, to obtain a loan for another purpose by giving away the right of seizure to the lender over a fixed property such as a house or piece of land; to pledge a property in order to get a loan.
  • (figurative) To pledge and make liable; to make subject to obligation; to achieve an immediate result by paying for it in the long term.
  • *
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    • Related terms

    * mortgagee * mortgager

    amortization

    English

    Alternative forms

    * (UK) amortisation

    Noun

  • The reduction of loan principal over a series of payments.
  • The distribution of the cost of an intangible asset, such as an intellectual property right, over the projected useful life of the asset.

    • See also

    * depreciation (of tangible assets) * depletion (of natural resources) * * * (projectlink) * (projectlink)