Amortization Schedule

An amortization schedule is a detailed table showing each mortgage payment over the loan term, breaking down principal and interest components, with declining interest and increasing principal portions over time.


Schedule ComponentsInformation
Payment numberSequential from 1 to total
Payment dateMonthly intervals
Payment amountFixed or variable total
Interest portionCalculated on remaining balance
Principal portionPayment minus interest
Remaining balanceUpdated after each payment
Payment Pattern Example25-Year AED 2M Loan at 5%
Month 1 paymentAED 11,684
Month 1 interestAED 8,333
Month 1 principalAED 3,351
Final month interestAED 49
Final month principalAED 11,635
Investor ApplicationUse
Cash flow planningPredict exact payment amounts
Interest cost analysisUnderstand total financing expense
Prepayment strategyIdentify impact of extra payments
Refinancing timingAssess remaining balance at any point

Related Terms

Mortgage (Residential)Green MortgageCommercial MortgageMortgage CapMortgage InsuranceMortgage TermMortgage Processing Fee Fixed-Rate MortgageCapped Rate MortgageMortgage Registration FeeFloating Rate MortgageFixed Payment MortgagePre-Approval (Mortgage)Buy-to-Let MortgagePrincipalInterest RateLoan Amortization Monthly PaymentReducing Balance Mortgage

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