Loan Amortization Calculator
Definitions
- Amortization: The process of paying off debt with regular payments over time
- Principal: The original amount of money borrowed
- Interest: The cost of borrowing money, calculated as a percentage
- Loan Term: The agreed period for repaying the loan
5 Smart Loan Tips
- Make additional principal payments to reduce interest
- Shorter terms = lower interest but higher monthly payments
- Always check for prepayment penalties
- Consider bi-weekly payments to accelerate payoff
- Refinance if you can get a significantly lower rate