What does a mortgage amortization schedule typically show?

What does a mortgage amortization schedule typically show?

• A. Loan amounts and interest rates
• B. Payment amounts and due dates
• C. Interest and principal repayment over time
• D. Creditworthiness assessment

Answer: (C)

A mortgage amortization schedule is a detailed table that outlines the repayment plan for a mortgage loan. It typically includes information on how much of each payment goes toward paying down the principal balance and how much goes toward interest over the duration of the loan. This schedule allows borrowers to see the progression of their loan balance and how the distribution of payments shifts from interest to principal repayment as time goes on. By providing a clear breakdown of each payment, borrowers are better equipped to understand their financial commitment over the life of the loan and the total interest paid by the end of the term. This information is crucial for planning and financial literacy, making the amortization schedule an essential tool for anyone managing a mortgage.

A mortgage amortization schedule is a detailed table that outlines the repayment plan for a mortgage loan. It typically includes information on how much of each payment goes toward paying down the principal balance and how much goes toward interest over the duration of the loan. This schedule allows borrowers to see the progression of their loan balance and how the distribution of payments shifts from interest to principal repayment as time goes on.

By providing a clear breakdown of each payment, borrowers are better equipped to understand their financial commitment over the life of the loan and the total interest paid by the end of the term. This information is crucial for planning and financial literacy, making the amortization schedule an essential tool for anyone managing a mortgage.