How Do You Understand A Mortgage Amortization Schedule?
Many people remember seeing a mortgage amortization schedule only twice during the lifetime of a mortgage, during application and payoff. The mortgage amortization schedule is an underused tool that helps borrowers understand how each payment is broken down in chronological order over the lifetime of a loan. The schedule or table displays amounts paid in interest, principal and to-date figures. It may be calculated by hand or by use of an online mortgage calculator. Obtain a recent mortgage statement which may already contain the amortization schedule. If not, calculate the schedule using the data on the statement. Read the first column of the table. All columns should be labeled. They display the date and payment amount in ascending order. Look over the following column which is likely labeled interest. This shows the dollar amount of interest paid per payment cycle. Follow to the next column which is labeled principal. Principal is the original amount of the mortgage. This column sho