Question

What does the amortization schedule tell about a loan payment?

Answer 1

An amortization schedule provides information about periodic loan payments. It is prepared by financial institutions or creditors (e.g. banks) to present a loan repayment schedule to borrowers. An amortization table consists of details about loan amount, payment, interest, principal and remaining loan amount at each period (month, quarter, semiannual or yearly). The amortization schedule helps lenders to know about what they owe and when payment is due at each period. It is also known as the mortgage amortization schedule.