What is amortization?

Amortization shows the amount of interest and the amount of principle balance paid in a single loan payment (i.e., what your monthly mortgage payment is really paying for).  This percentage changes over time so that the interest portion of your payment decreases as the loan balance decreases.  At the same time, the amount applied to the principle balance increases so that the loan is paid off (amortized) in the allotted time (generally 30 years).

What is an amortization schedule or amortization table?

An amortization schedule is a table designed for easy access to see how much of each payment will be applied toward the principle and how much toward the interest…over the life of the loan.  Amortization tables also show the gradual decrease of the loan balance until after 30 years (or the life of the loan) when it reaches zero (0).


Hampton Roads Real-e-statement is written by Alyssa Godwin, a Realtor with Liz Moore and Associates. For questions regarding amortization or monthly mortgage payments contact Alyssa at 757-329-6161 or You can also find Alyssa on Facebook or on the web at