A table showing the amounts of principal and interest due at regular intervals and the unpaid balance of the loan is paid after each payment is made. Since interest is due on the actual unpaid balance rather than on the schedule balance, an amortization schedule can be misleading if the loan is either paid in advance or or delinquent. In practice, however, many lenders adhere to the amortization schedule even though it may not be technically accurate.
« Back to Glossary IndexAmortization Schedule
« Back to Glossary Index