What is an amortization Table?

Answer 1

An amortization table is a graph used to recalculate loan payments. More specifically, mortgage payment recalculations. It is a very good tool that is utilized by loaners/bankers/credit unions.

Answer 2

An amortization table is what is provided to a lender and borrower to describe the repayment of a loan. It is the details of the repayment plan. The table is used in many loans but is most commonly used for mortgage and automobile loans. An amortization table factors in the amount borrowed, the length of the loan, and the interest rate to devise schedule of monthly payments. Since a monthly payment is usually fixed, the amortization table will provide details about percentage of the monthly payment went towards interest and what went toward the principal balance. It will also show the remaining balance and payment amount. Over the course of time, the amount going toward the principal increases while the amount going toward interest decreases assuming payments are made on time.

Rather you or a lender or borrower, you can see the amortization table. A look at your account will provide you with a detailed table located on the payment history page. You can see what your payment was and how much went toward interest and principal. The table is usually linear and chronological to make it easier to read. In addition a monthly breakdown you can also how much interest was paid over time. With most loans interest is frontloaded. That means the bulk of your monthly payment is applied toward interest. As the loan matures, more and more principal is paid each month until the debt is fully paid. This is because interest accrues over time and since the principal is lower each month less interest will be added.

The monthly payment is determined ahead of time by taking in to account how much you borrowed, how many months are in the contract, and the interest rate is agreed upon. Monthly payments remain the same throughout the length of the loan until the last month which will often be less in order to close out the loan. All of these terms are defined ahead of time in the loan contract. Changes to the terms such as refinancing can be discussed between both parties. That would lead to a new amortization table being developed. However, the table itself will follow the same formula so that both sides involved in the loan know how the payment is being applied.

Answer 3

An amortization table shows what would happen to your loan if you made extra payments in addition to the regular monthly amount due. Bankrate.com has a free amortization table.

Answer 4

Amortization tables are payment schedules for loans. These determine the length and process by which loans are satisfied and reported. Most consumers don't bother with them.

Answer 5

Amortization table is a way for the people who lend out money to figure out a re-payment on a monthly basis. You can do a search on the internet or even try your local library.