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Amortization Schedules, Create An Amortization Schedule
by Richard Romando
An amortization schedule, in general, is a record of loan or mortgage payments. This record includes the payment number, date, amount, breakdown of principal and interest and the remaining balance owed after the payment. Here is an example on how an amortization schedule is calculated.
Let’s say a person has been loaned $10,000 from a lender. The annual interest rate (AIR) is 12% with a payment of $350 each month to the lender. Twelve percent per year is one percent per month. The lender gives him the $10,000 on June 15th - the advance date; and one month later (July 15th), the first monthly payment is due.
The lender multiplies the monthly interest factor times the outstanding balance and the interest owed for the first month is $100.00 (.12 x 10,000/12), which is done at the end of the month. $250 of the monthly payment is applied towards the principal and the balance owed to the Lender. This is done immediately after the borrower gives the lender the $350 payment and balanced owed is $9,750.00. The interest for the borrowed money is calculated and taken first whenever any payment is made. The remaining amount goes towards reducing the principal. A negative amortization schedule is produced and the principal owing starts to increase if the payment doesn’t to cover the interest. The interest shortfall is added to the balance.
The next monthly payment is due on August 15th, the balance owed is $9,750 and the interest owed for the use of the money for the second month is 0.01 x 9,750 = 97.50. $252.50, hence, is applied against the loan or mortgage. The balance owing immediately after that second payment is $9,497.50. Amortization Schedule provides detailed information on amortization schedules, amortization schedule calculators, create an amortization schedule, free amortization schedule calculators and more. For more information go to http://www.e-amortizationschedule.com and/or visit its affiliated site at http://www.z-Lending.com for related information.
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You may want to try these websites for additional information
http://www.pine-grove.com/amortization/free%20amortization%20schedule.htm
http://www.mfa.bc.ca/amortschedules.htm
http://www.timevalue.com/tvalue.htm
The information provided in this article is the express opinion of the author. Exchangenet is not responsible for the content!
An amortization schedule, in general, is a record of loan or mortgage payments. This record includes the payment number, date, amount, breakdown of principal and interest and the remaining balance owed after the payment. Here is an example on how an amortization schedule is calculated.
Let’s say a person has been loaned $10,000 from a lender. The annual interest rate (AIR) is 12% with a payment of $350 each month to the lender. Twelve percent per year is one percent per month. The lender gives him the $10,000 on June 15th - the advance date; and one month later (July 15th), the first monthly payment is due.
The lender multiplies the monthly interest factor times the outstanding balance and the interest owed for the first month is $100.00 (.12 x 10,000/12), which is done at the end of the month. $250 of the monthly payment is applied towards the principal and the balance owed to the Lender. This is done immediately after the borrower gives the lender the $350 payment and balanced owed is $9,750.00. The interest for the borrowed money is calculated and taken first whenever any payment is made. The remaining amount goes towards reducing the principal. A negative amortization schedule is produced and the principal owing starts to increase if the payment doesn’t to cover the interest. The interest shortfall is added to the balance.
The next monthly payment is due on August 15th, the balance owed is $9,750 and the interest owed for the use of the money for the second month is 0.01 x 9,750 = 97.50. $252.50, hence, is applied against the loan or mortgage. The balance owing immediately after that second payment is $9,497.50. Amortization Schedule provides detailed information on amortization schedules, amortization schedule calculators, create an amortization schedule, free amortization schedule calculators and more. For more information go to http://www.e-amortizationschedule.com and/or visit its affiliated site at http://www.z-Lending.com for related information.
These articles on lifestyle and more
This article is available for syndication. It must be republished with its title, text, and hyperlinks in tact (HYPERLINKS MUST BE KEPT ACTIVE). amortization schedules
Return to the selection of amortization schedules
You may want to try these articles on amortization schedules
Amortization Schedules, Amortization Schedules by Richard Romando Approximately 320 Words
Amortization Schedules, Free Amortization Schedule Calculators by Richard Romando Approximately 338 Words
Amortization Schedules, How Amortization Works by Richard Romando Approximately 302 Words
Amortization Schedules, Mortgage Amortization Schedules by Richard Romando Approximately 333 Words
Amortization Schedules, Loan Amortization Schedules by Richard Romando Approximately 333 Words
You may want to try these websites for additional information
http://www.pine-grove.com/amortization/free%20amortization%20schedule.htm
http://www.mfa.bc.ca/amortschedules.htm
http://www.timevalue.com/tvalue.htm
The information provided in this article is the express opinion of the author. Exchangenet is not responsible for the content!
