Amortization & Amortization Schedule & Loan Amortization

Amortization is a special way of paying back a mortgage loan in equal portions. It has two components. The first covers the interest and the second the principal. Simultaneously, as you make your monthly repayments, the balance of your loan changes (usually reduces) so that with each month less and less money goes towards the interest and more and money goes towards the principal.

Platinum Lending LTD has a special amortization schedule to look into the details of your prepayment period and amortization schedule calculator for you to know how much interest and principal is left for you to pay.

It is desirable that you keep your loan balance positive, i. e. from out the money you repay every month there is enough to send in both to the principal and to the interest. Otherwise, your balance will increase after each payment and the thing called negative amortization might take place. Such situation might occur, for instance, when the payment is not large enough to cover the interest due for a period and should certainly be avoided.