The amortization schedule for a residential mortgage is a table that provides a breakdown of the schedule of payments from the loan’s first required payment to the loan’s final payment. It details the amount of principal and the amount of interest paid each month. The amortization schedule is one of the most important, yet overlooked, documents involved in the mortgage process, as it shows the true cost of the house. For example:
Loan amount: $100,000
Interest rate: 6%
Mortgage term: 30 years
Number of payments: 360
Monthly payment: $599.55
Total interest paid: $115,838.19… Read More
