Amortization refers to when you pay the money you owe to the borrower (the person who generated the loan).The principal amortization can be gradual (in monthly payments or various payments over a period of time) or giving higher payments when accepting the loan to finish paying it earlier.The amortization takes into account the payment of the interest you owe, so if you have not finished paying the interest you cannot say that you have amortized your debt.The repayment fee depends on the time it will take you to pay your debt.If you choose a greater number of years to pay, your payments (usually monthly) will be smaller, but the total amount you pay will be higher, due to interest. This is only suitable when you are not sure of being able to make higher monthly payments. If you wish to generate mortgage amortization schedule with extra payment without knowing Finance, then use our calculator.
Two basic types of amortization
Total amortization
it is when you decide to pay the total debt + the interest that you have left to owe nothing to the bank.
Partial amortization
When you pay part of the debt, but not all.
How to interpret a repayment schedule?
Within the concept of amortization, it is important to explain how you can use the amortization schedule to plan the payment of your debts. Let’s see it.
The Amortization Schedule is a table that describes the details of the payments you will make to pay off a loan.
The amortization is the total payment thereof, which is divided into several payments over a certain amount of time.
This is usually provided by the organization that lends you the money, but you can also use our mortgage amortization schedule with extra payment calculator, you can find this calculator from this link.
Normally, an Amortization schedule will separate the figures that you must pay for the amount you owe from those that you must pay for the interest generated.
This calendar is often used to know how much interest you will pay during the time you have the debt.
