How It Works ยท Finance
Mortgage Amortization
Fixed payments over time
Mortgage amortization schedules allocate interest first, increasing principal portion over time.
- principal
- interest
- term
- payment schedule
- amortization table
Inputs
Loan amount, interest rate, term length, payment frequency.
Process
Each payment covers accrued interest then reduces principal; schedule recalculates balances.
Outputs
Declining balance and full payoff at end of term if payments maintained.