What Is a Mortgage Amortization Schedule?
A mortgage amortization schedule is a table that shows the amount of the payment that goes toward interest on a mortgage loan, and the amount that is put toward the principal. Such a schedule also shows the remaining balance of the loan. It can often be viewed in terms of months or years. With an amortizing loan, more interest is paid in the first years of the loan than principal. In fact, during the first 18 years of a 30-year mortgage, more of the payment is applied to the interest than principal. The last 12 years of such a loan apply the majority of the payment toward the principal. If the bank does not supply the homeowner with an updated mortgage amortization schedule often enough, one can be created using simple computer programs. Microsoft Excel®, for example, offers a template that can be downloaded from the company’s website. The necessary information to create an amortization schedule includes the loan amount, load period, annual interest rate, amount of payments made in a y
