An amortization schedule is a chart showing the details of each periodic payment for the repayment of an amortizing loan, commonly know as mortgage loan. Amortization simply refers to the procedure of paying off a loan or mortgage by regular payments. A share of every payment is for interest on the loan while the rest of the amount is against the principal balance. The ratio of how much should be the percentage of principal amount and interest in each payment is calculated by an amortization schedule.
As a rule, each payment includes both the interest and the principal amount. But the actual amount applied to the principal balance varies for each payment. The remainder of the payment each time is applicable to the interest value. The main purpose of an amortization schedule is that it helps you before delivering each payment to calculate the specific amount of money to be put against both the principal balance, and the exact amount of money to be put against the interest account of the loan or mortgage. In the beginning, it is advisable to allocate a larger portion of each payment to the interest account. Gradually, as the loan begins to mature, the larger portions are assigned against the principal amount balance of the loan.
To give you a head start, we have prepared for you this Mortgage Amortization Schedule Template to help you in your mortgage payments. You can easily use this Mortgage Amortization Schedule Template to generate a summary of your mortgage amount and schedule your payment based on the terms and conditions of the original loan. Our Schedule Template is very uncomplicated and easy to use. You can take the help of this template as an alternate to taking advice of an amortization expert. Simply click on the download link below and get started with your amortization schedule.
Here is the preview and download link to this Free Amortization Schedule Template,