An Amortization Table is a time table or schedule which provides you
with a breakdown of the regular payments into principal and interest on an amortization loan. Tables such as this can be used to help you calculate out the amount of principal that you
will need to pay during your mortgage term. Using an amortization
table will help you to get a payment plan that will enable you to
reduce your debt quickly through regular payments of the principal amount.

Such tables run in chronological sequence and the first payment is
not expected to take place until one full payment period (one month
later) after the loan was started and not on the actual day of the loan being taken out. The last payment that appears on this list will pay off the remainder of the loan completely. In addition you should
take note that normally the final to appear on such a table will be different from all previous payments that you would have made.

As well as breaking down each payment into both the interest and
remaining principal portions of the mortgage an amortization table will also reveal all interest paid to date,
principal paid sofar and the remainder of the principal on each payment date. Also an amortization table will show exactly how much of your money is being put towards the interest repayments and how much is put towards the principal balance after each payment that
you make.

When using an amortization table you will need to enter the following information
to calculate exactly what your payments will be.

1. The mortgage amount (the total amount of money that you wish to borrow)
2. The monthly repayments (this is the amount of money which will
need to be paid each month in order to repay the loan)
3. The interest rate (this is entered as a percentage – so if the interest rate is
0.065 then you will need to enter 6.5% in to the amortization table)
4. The length of the loan (this is the number of years over which you wish
to repay the loan)

So once you have entered the numbers relating to the above in to the boxes that are provided on an amortization table for you click the calculate button and it will provide you with your repayment schedule.