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Loan Amortization Basics

Understand loan payoff curves

Loan amortization tables detail each payment's split between interest and principal, showing how extra payments reduce interest and shorten term; key factors are rate, term, and compounding.

See the Schedule

Interest-heavy early payments shift toward principal over time.

Adjust

Extra principal payments cut total interest and term.

Compare

Term/rate changes affect total cost; review before refinancing.

Related Terms