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Is there such a thing as accelerated amortization?

Is there such a thing as accelerated amortization?

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Answer #1

Yes, there is such a thing as accelerated amortization.

Explanation-

Amortization- Amortization is used for two purposes i.e amortization of loans and amortization of assets. Amortization of assets refers to the process of writing off the intital cost of intangible assets. Amortization of loan refers to the process of reducing the amount of debts or loan with regular payments.

Accelerated amortization- Accelerated amortization refers to the process in which a person can make extra payments of the mortgage principal to settle down the loan faster.  

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