- Credit 101
- Teaching Tools
- Scores
- Life Stages
- Credit Mishaps
- Understanding Different Bankruptcy Chapters
- Your Credit Report After a Bankruptcy
- Understanding Judgments
- Inaccuracies on Your Credit Report
- Disputing Credit Report Errors
- Understanding Foreclosure
- The Foreclosure Process & What To Do Afterwards
- Understanding Identity Theft
- In the event of: The Death of a Spouse
- Rebuilding Your Credit
- Choosing a Reputable Credit Counselor
- Avoid the Downside of Credit Mismanagement
- What is a Credit Freeze
- Worksheets & Letters
- 6 Steps to Creating a Budget
- Household Budget: Wants vs Needs
- Personal Budget Template
- Understanding Amortization Schedules
- Loan Amortization Calculator
- Sample Opt-Out Letter
- Sample Dispute Letter
- Annual Credit Report Request Form
- Auto Loan Payment Calculator
- Back-to-School Budgeting
- Cost of Credit
- Emergency Fund
- How Much Car Can You Afford
- How Much House Can You Afford
- How Much Will College Cost
- How Much Will My Loan Cost
- How Will My Savings Grow
- Mortgage Payment
- Mortgage Refinancing
- Pay Down Debt or Invest
- Repaying Student Loans
- Retirement Fund
- Rework Your Budget
- Saving for a Goal
- Should I Consolidate My Debt
- Travel Budgeting
- Your Holiday Budget
- Buying a House
- 5 Steps to Buying a Home
- 5 C's of credit When Applying for a Loan
- What Score is Needed to Purchase a Home
- Using a Realtor
- Understanding Fixed Rate Mortgages
- Understanding FHA Loans
- Understanding VA Loans
- Understanding Interest Only Loans
- Understanding ARM Loans
- Understanding Combo Loans
- Understanding Streamline K Loans
- Understanding Bridge Loans
- Understanding HELOC (Home Equity Line of Credit)
- Understanding Reverse Mortgages
- Basic Mortgage Underwriting Principles
- Credit & Financial Law
- Home
Creating a Household Budget: Wants vs. Needs
Personal Budget Template (requires Microsoft Excel)
Understanding Amortization Schedules
Loan Amortization Calculator (requires Microsoft Excel)
Sample Opt-Out Letter (requires Adobe Reader)
Understanding an Amortization Schedule
An amortization schedule reveals the specific monetary amount put towards interest, as well as the specific put towards the Principal balance, with each payment. Initially, a large portion of each payment is devoted to interest. As the loan matures, larger portions go towards paying down the principal.
Amortization schedules run in chronological order. The first payment is assumed to take place one full payment period after the loan was taken out, not on the first day (the amortization date) of the loan. The last payment completely pays off the remainder of the loan. Often, the last payment will be a slightly different amount than all earlier payments.
In addition to breaking down each payment into interest and principal portions, an amortization schedule also reveals interest-paid-to-date, principal-paid-to-date, and the remaining principal balance on each payment date.
An amortization schedule can help you keep up with exactly how much principle is being paid on your loan each month, and how much is going toward interest. It will also enable you to see the benefits of making additional principle and interest payments.
