amortization schedule
Definition
The schedule of payments for paying off a loan. An amortization schedule breaks down the payments into interest and principal, which is helpful because with an amortized loan these the amounts vary with each payment. Typically, an amortization schedule will also include additional information such as the amount of interest and principal paid, as well as the remaining principal balance. Amortization schedules are most frequently used with mortgages.
Use this term in a sentence
“ The amortization schedule was strictly adhered to by the debtor as they wanted to pay off the debt as much as we wanted them to. ”
“ Our amortization schedule ensured that we would pay back everything on time and everything would be okay for us, in the long run. ”
“ When we were ready to purchase our first home the amortization schedule shocked us because the amount we would pay for the house over the length of the loan was more than double the purchase price. ”
