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What is an amortization schedule?

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An amortization schedule for a loan can look complicated, but they are actually very easy to understand. These schedules are designed to show a borrower or potential borrower how much their monthly payments will be, how much they will have spent in interest, and how much it will cost him or her to pay off a loan early.

Amortization schedules are usually issued along with the rest of the paperwork when applying for a loan. In general, they list out the date of every payment that has to be made in order to pay off the loan. In some cases, each payment is listed with a date, but it is most common to find generic amortization schedules that just list each payment to be made on the loan until it is paid off.

In addition to the payments, these schedules will also show the breakdown of how much interest and principal is being paid with each loan payment. Most loans will have consumers pay more in interest at the start of the loan, then pay less in interest as the principal is reduced. The schedule will also show the consumer the total amount of interest he or she has paid over the life of the loan with each payment, as well as how much principal is left.

A consumer can use their amortization schedule to determine how much he or she still owes at any point in time while paying off a loan. If a consumer has made extra payments, he or she can request an updated amortization schedule that shows the adjusted amounts of interest and principal based on the extra payments. There are also a number of online calculators that will produce amortization schedules based on a loan’s interest rate and payment term.

Anyone who is trying to get out of debt should pay close attention to their amortization schedule and use it when making their budget to pay off their debt early. To learn more, go to



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