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Mortgage Glossary

Amortization Schedule

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

An amortization schedule is a table showing each mortgage payment broken into principal and interest, plus the remaining balance, for the life of the loan.

What Amortization Schedule means

Early payments go mostly toward interest, with principal rising over time. The schedule shows exactly how equity builds and how extra principal payments shorten the term. It is the clearest way to see total interest paid.

Florida example

A Jacksonville buyer's amortization schedule showed that on a $300,000 loan at 6.5%, the first payment applied about $1,625 to interest and only $271 to principal.

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