Basically, amortization is a repayment feature on loans with equal monthly payments that have a fixed end date or term. Not just mortgages, but car loans also operate this way. As a borrower it’s always a great idea to obtain what’s called an amortization table before obtaining this type of loan. Your lender can provide one for you or you can find one online for free. This table features a month by month breakdown of your equal payments by interest and by principal reduction. These tables are great because you get to see the accumulated and total amounts of interest you will be paying over the loan term. These types of payment arrangements also cannot be manipulated. Three inputs are all that are needed to generate an amortization table, interest rate, term and loan amount. I’m Stewart Brown, a licensed Mortgage Loan Originator in Palm Springs, California here to simply topics in Real Estate and Mortgage Lending. Please, like, share, follow and subscribe!
