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What is an amortization schedule?

 

What is an amortization schedule?

The Bankrate.com financial term of the day is: "amortization schedule" or "amortization table."

There's a science to paying off a mortgage, and the details can be seen in something called an amortization schedule or amortization table. It's a chart breaking down the loan into payments, and it shows how those installments are split into principal and interest and also how the payments gradually reduce the unpaid balance.

An amortization schedule, or amortization table, shows where your money goes as a loan is paid off over time, in installments.

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