What You'll Learn
- The amortization schedule outlines every monthly payment and the amount that goes toward principal and interest
- Your contributions to principal start out low and increase as the loan matures
After you complete your loan application, you can request the amortization schedule for your new home from your lender. This is an important table that details the amount of principal and interest paid each month, ultimately providing you with the true cost of your home over the life of the loan.
You bought your home for $150,000 with a down payment of 10%, resulting in a loan amount of $135,000. You secured a 30-year fixed-rate mortgage at 4.5% interest with a monthly mortgage payment of $684.03.
Following are highlights from the full amortization schedule on your loan.