Mortgage Amortization Table

From LoveToKnow Mortgage

A mortgage amortization table is a valuable tool for homeowners and those who are thinking about buying a home. It indicates how much you still owe on your house from year to year.

Mortgage Terms Defined

Here is a brief list of terms that often appear on amortization tables for mortgages:

  • Loan Amount is the amount borrowed on the home, also known as the principal.
  • Annual Interest Rate refers to the interest charged each year on the principal.
  • Term is the number of years the borrower will be making payments on the mortgage. Most mortgages are taken out over a 15, 20, or 30 year term.
  • Monthly Payment is the amount you will be paying on the loan. Mortgage insurance and property taxes are not included in the monthly payment amount, although some homeowners may make a payment that includes them as well.
  • Total Payments is the amount you will pay to the bank over the term of the mortgage.
  • Total Interest Paid is the amount you will pay for the interest portion of the mortgage. Again, this is calculated over the lifetime of the loan.

Information Contained in a Mortgage Amortization Table

Reading a mortgage amortization table will show you how much of the principal will remain on your mortgage at the end of each year the mortgage runs. The simplest ones indicate this information without taking any extra payments into account.

You may be surprised to find that over the first several years of the mortgage most of the money you are paying out will go toward interest. Another interesting bit of information contained in a mortgage amortization table is the total amount of interest you will pay for the privilege of owning a home with a mortgage.

Would you be surprised to find that if you make all of your payments as scheduled, you will have paid the total cost of your mortgage at least a couple of times over? Since very few people have the funds to pay for a house in cash, homeowners need to resign themselves to paying interest on the loan as well.

You can also use a mortgage amortization table to find out what the impact of any extra payments will be on your mortgage. This information can help you to decide which mortgage is the best choice for your financial situation.

Other Types of Mortgage Tables

A Mortgage Rate Table compares rates from a number of different lenders. It's a good idea to do your homework to find out which lenders can offer you the best rates and the most flexible repayment terms.

If you aren't sure how much you can afford in mortgage payments, a Mortgage Payment Table can help. It indicates what the monthly principal and interest calculations will be in different situations. An online version is easy to use and if you want to get results for different principal amounts or interest rates, all you need to do is reset the calculator. When you are ready to meet with a lender you can proceed with more confidence since you know that you will be able to afford the payments for the mortgage you are considering.

Where to Find Mortgage Amortization Tables Online

Here are a couple of examples of online resources when you want to see a mortgage amortization table:

  • If you want to do some calculations yourself, you may want to check out the mortgage calculator at the HSH Associates web site. The chart shows how much you will be paying per $1,000 per month borrowed over either a 15 or 30-year term.
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