Amortization Schedule
Alternate Names:
An Amortization Schedule is also known as a:
- Loan Amortization
- Loan Amortization Schedule
- Mortgage Amortization
- Loan Payment Schedule
What is an Amortization Schedule?
An Amortization Schedule is a loan payment calculator that helps you keep track of loan payments and accumulated interest.
LawDepot's Amortization Schedule lets you outline how the borrower makes loan payments, such as a one-time lump sum payment at the end of the term (including accumulated interest), or regularly scheduled payments (such as bi-weekly or monthly).
You can also specify whether regular payments go toward only the loan balance (also known as the principal), only the interest, or both. If the schedule shows that the payments only go toward interest, then the principal is to be paid at the end of the term.
Why should I use an Amortization Schedule?
Using an Amortization Schedule is useful for both the lender and borrower.
The lender can use an Amortization Schedule to showcase the borrower's promise to pay back the loan either through regular payments or a lump sum.
The borrower benefits from an Amortization Schedule by having a visual representation of how each payment they make affects the total loan amount.
What can I use an Amortization Schedule for?
An Amortization Schedule is generally used in situations that require larger loan amounts, such as:
- Business loans
- Real estate purchases
- Student loans
- Vehicle purchases
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