Amortization refers to the changes in the important equilibrium of a loan - such as a mortgage loan - over time. Each month, a fixed payment is made. A quantum of that payment goes toward paying interest on the loan to the lender. The rest goes toward the loan principal, or number still owed on the loan if it were to be paid off today.
Over time, as the important gets paid down, a greater quantum of the fixed monthly payment number goes toward paying down the loan's principal. Therefore, the loan gets paid down faster as time goes by.
Calculate Mortgage Interest
If you are seeing for an amortization calculator for a mortgage loan, you may want to learn the method for amortization. That way, you can set up your own calculator in a spreadsheet schedule such as Excel.
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