Gs4 Security: Mortgage Amortization Calculator

Wednesday, 19 December 2012

Mortgage Amortization Calculator

An amortization schedule is a schedule that shows which part of a set periodic loan payment is applied to the principal, and which part is applied to the interest. Mortgages typically use amortization schedules to show this breakdown of monthly payments. An amortization schedule can be used as a tool to accelerate the building of equity and to compare various loan rates and terms when shopping for a mortgage.Typically, an amortization schedule will show a breakdown of the loan payoff and the interest paid through the life of the loan. This is, ultimately, what your loan will cost you, if you make only the regular payments on time. This amount is also disclosed to you in other places in your mortgage paperwork.The amortization schedule will break it down one payment at a time. This way you can see what portion applies to the principal and interest at any point during the pay-off period. You will know how fast or slowly your loan is being paid off and how much it’s costing you in interest. It also shows why the balance changes very slowly at the start of a long-term loan, compared to the fast payoff seen at the end of the payoff period.