WordGarden.iounamortized
C2Pronunciation
UK
US
- /əˈnæmərˌtaɪzd/
Meanings
Adjective
in accounting, not yet fully written off or allocated over time
not yet paid off through scheduled installments
Beyond the definition
Imagine you take out a loan to buy a house. Each month, part of your payment reduces what you owe. "Unamortized" refers to the part that has not been paid off or written off yet. In simple terms, it is the amount that still remains.
You may see this word with mortgages, other loans, bond premiums, or costs that are spread over time in accounting. For example, an unamortized loan balance is the part you still owe. An unamortized bond premium is the part that has not yet been written off over the bond's life. It is a finance and accounting word for something that still has some amount left.
"Unamortized" comes from the financial term "amortization," which describes the process of reducing a balance or spreading a cost over time. Think of it as slowly chipping away at an amount until it is fully paid off or fully recognized in the accounts. The prefix "un-" simply means not yet.
So, "unamortized" describes the portion that has not yet been reduced through scheduled payments, charges, or write-offs. It is the remaining amount still to be dealt with. In finance and accounting, the word helps show how much of a loan, premium, discount, or recorded cost is still left on the books.
You'll often encounter "unamortized" when dealing with:
- Mortgages: The unamortized portion of your mortgage is the remaining principal you owe to the bank.
- Bonds: If a bond is bought at a premium or discount, that extra amount is often amortized over the bond's life. Any part not yet written off is unamortized.
- Loans: Similar to mortgages, the word can describe the remaining balance that has not yet been paid down.
- Deferred or capitalized costs: Certain costs are spread over time in accounting, and the part not yet charged as an expense is unamortized.
- Intangible assets: Some intangible assets are amortized over their useful lives, so any remaining book amount may be described this way.
Understanding "unamortized" helps you see the real remaining amount, not just the original figure. Whether the subject is a loan, a bond premium, or a cost being spread over time, the word points to the part that is still there and still needs to be accounted for.
Examples
- 1
Balance sheet
The company still had unamortized loan fees on its balance sheet.
- 2
Early termination
If the contract ends early, any unamortized costs are charged to expense right away.
- 3
Bond refinancing
After the refinancing, the bank wrote off the unamortized discount on the old bonds.
- Phrasewrite off
remove something from the accounts as a loss or expense
See also
Forms and spellings
1 form open this card.
Main spelling
- unamortized