Reading an Amortization Table?

1 Answer

Answer :

Amortization tables are used to help customers who have a loan see how the loan is progressing. An amortization table is normally used for mortgages. An amortization table can help you see how much of your monthly payment goes towards the principal of your loan. This type of table can also help you see how much of your monthly payment goes towards the interest that your loan accumulates.The Monthly Payment Column on an Amortization TableThe monthly payment column is the column that shows you how much money you have to pay every month. Most loans feature monthly payments that do not change throughout the length of your loan's term.The Principal Paid Column on an Amortization TableThe principal paid column on an amortization table is the column that tells you how much of your monthly payment goes towards the amount of money that you borrowed and now owe to the lender. At the start of your loan, your principal payments will be pretty small. You make small monthly payments at the beginning of your loan because there is more interest at the start of the loan. Once the amount of money that you owe gets smaller, more of your monthly payment will go to the principal.The Interest Column on an Amortization TableThe interest column shows you how much of your monthly payment is going to the interest that has accumulated on your loan. The amount of interest that is taken out of your monthly payment is higher because most of you owe has not been paid back yet. As your overall balance gets smaller, your monthly interest payments will decrease as well. You can figure out how much of your payment goes to interest by multiplying the interest rate by the loan's outstanding balance.The Balance Column on an Amortization TableThe balance column tells you how much of the loan you still need to pay to your lender. You can determine how much of your loan you still need to pay by subtracting your monthly principal payment from last month's balance.

Related questions

Description : What does an amortization table show me?

Last Answer : An amortization table is a report of all pertinent information regarding a loan including the terms of the loan and a list of each calculated loan payment. Each loan payment entry could show:the ... of interest in this payment)portion of payment that reduces the principal for the next payment entry

Description : Does a mortgage amortization table show me interest paid?

Last Answer : Yes, most mortgage amortization tables will show you both the principal paid and the interest paid over every year of the life of the loan. There are many free amortization calculators online, including one at http://www.myamortizationchart.com.

Description : Where can I get the amortization table?

Last Answer : You may find information regarding which mortgage sites have amortization table calculator at the following websites....www.amortization-calc.com/ or www.bankrate.com/calculators/.../amortization-calculator.aspx

Description : what is an amortization table used for?

Last Answer : A table that details the process of amortization. Amortization is the process of paying off a debt over a period of time in installments. As debts involve interest on top of principal, this can be confusing, and thus an amortization table is used.

Description : The Importance of an Amortization Schedule?

Last Answer : An amortization schedule is a loan payment plan based on thedifference between the interest you owe and the principle you oweon a large ticket item. Amortization schedules are usually ... properly calculatedamortization schedule, you will be able to plan your entire paymentseries from the d

Description : How do I calculate the loan amortization schedule?

Last Answer : The mortgage calculator is a great way to see how much sooner you can pay off your loan. There are a few online, and very accurate, such as the one here: http://www.amortization-calc.com/

Description : What does a mortgage amortization calculator do?

Last Answer : The mortgage amortization calculator is for working out your monthly mortgage payments. It will also calculate into the equation when and if you make extra monthly payments on your mortgage. So it will help you keep track of your mortgage and let you know how things stand.

Description : What exactly is an auto loan amortization ?

Last Answer : The term "auto loan amortization" simply refers to the payment shedule associated with an auto loan. Auto loans can be obtained at a variety of financial establishments, whilst amortization schedules for such loans are available online.

Description : Where can I find a tool to create a detailed amortization schedule for my student loans and mortgage?

Last Answer : If you are looking for an a tool to create an amortization schedule, you can find them on numerous websites. They can be found at websites such Mackenzie financial and amortization-schedule.

Description : Where to download amortization schedule?

Last Answer : If you are interested in using an amortization schedule, you can find them on most banking websites. To be more specific, websites such as bankrate and Bank of Canada have them available.

Description : Which is a better loan to obtain, an Amortization Loan or a a Bullet Loan?

Last Answer : Amortization Loans and Bullet Loans both have their advantages and disadvantages. If you plan to pay the loan back right a way, a Bullet Loan would be a good choice for you, however if you plan to pay the loan back over an extended time, an Amortization loan might suit you better.

Description : Where can I find an amortization chart online?

Last Answer : You can find an amortization calculator, which will produce a chart based on your numbers, online at http://www.myamortizationchart.com You can use this chart for free and print out your final copy if you so desire.

Description : Amortization Schedule?

Last Answer : When you take out a loan, you may be given an amortization schedule that tells you how long it will take to pay off your loan. This schedule should also tell you how much interest you are paying over the ... find that you couldn't afford as much house or as big of a car as you thought your could.

Description : Do You Have To Receive An Amortization Schedule From Lenders?

Last Answer : An amortization schedule is a document that lays out how much money you are expected to pay each month on a loan. It will tell you how much interest you are paying, how much of your payment is going ... to rely on their lenders to be honest and upfront about the loan that they have just taken out.

Description : How can I do a mortgage amortization?

Last Answer : You can find legitimate information about mortgage amortization at the following websites...cdrates.bankaholic.com/cd-interest-rate-calculator/ or banking.about.com Money Banking / Loans Mortgages

Description : Can I download an app for an Amortization mortgage calculator?

Last Answer : Yes, you can get an app for your iPhone for an amortization mortgage calculator at the following site...iTunes.apple.com/us/app/mortgage-calculator-extra/id396886949?.

Description : Where can I find a free amortization schedule?

Last Answer : Amortization schedule calculators can be found on-line at many financial institutions such as national banks or other lending agencies. These schedules are generally available free of charge.

Description : How can I use Excel to make an amortization schedule?

Last Answer : A good place to go to find out how to use Excel for loan amortization is www.tumcales.com. The tutorial is by Timothy Mayers. He explains everything and even shows a picture of the excel worksheet and how to do the loan amortization on excel.

Description : Do lenders provide amortization schedules for free?

Last Answer : Bankrate.com offers the best free, fast, and confidential amortization schedules online for use by their users. Sign up for free at bankrate.com and you will instantly be able to use bankrate's intuitive features.

Description : How much finance is required to complete the mortgage amortization?

Last Answer : The amount that is amortized depends on the amount of the down payment and the interest percentage rate. It will vary with those and other factors. A good banker will be able to help calculate the exact figures with you.

Description : What is a car loan amortization?

Last Answer : Basically, Car Loan Amortization is the balance of your auto loan. It is the process of following a plan or schedule of your loans for your automobile.

Description : Where can I find about car loan amortization?

Last Answer : When a loan payment is made towards a loan, a part of the payment is for the interest and part of it is applied to the principal amount. This process of making equal payments to pay off a loan over its life is loan amortization.

Description : How To Calculate Amortization Schedules?

Last Answer : Amortization schedules are methods of scheduling payments, usually with interest, over an extended period of time. These schedules are easily figured using a number of calculators online or a spreadsheet program ... in which you may pay your purchases off faster than the expected length of the loan.

Description : What is an amortization calculator?

Last Answer : An amortization calculator helps you to figure out what your mortgage payments will be each month and what would happen if you were to pay over what your monthly payment is. Find more here: http://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx

Description : What are amortization schedules?

Last Answer : Amortization schedules are used when detailing an amortizing loan. They lay out how much and when you will pay off your debt. Specifically an amortization schedule deals with the percentage of the actual loan you will be paying off as compared to the interest per payment.

Description : What does amortization mean? A. Spreading payments over multiple periods B. Buying a financial instrument in order to sell the same instrument at a higher price in another market C. Issuance approval, ... issuer D. Buying the underlying securities at a specified excercise price E. None of the Above

Last Answer : A. Spreading payments over multiple periods Explanation: Amortization is an accounting term that refers to the process of allocating the cost of an intangible asset over a period of time. It also refers to the repayment of loan principal over time.

Description : Amortization' in respect of financial obligation of a company means the (A) Liquidation of financial obligations on instalment basis (B) Commitment of financial obligation on priority (C) Liquidation of all the obsolete equipments of the company (D) Modernisation of the plant equipments

Last Answer : Option A

Description : Amortization' in respect of financial obligation of a company means the (A) Liquidation of financial obligations on instalment basis (B) Commitment of financial obligation on priority (C) Liquidation of all the obsolete equipments of the company (D) Modernisation of the plant equipments

Last Answer : Option A

Description : A tractor shovel has a purchase price of Rs. 4.7 lacs and could save the organization an amount of rupees one lac per year on operating costs. The salvage value after the amortization period is 10% of the purchase price. The ... will be (A) 3.7 years (B) 4.23 years (C) 5 years (D) 7.87 years

Last Answer : (B) 4.23 years