Amortization Schedule Hide Option Choice For Free

Lenders can use different types of amortization methods to create a loan's amortization schedule or table. Though commercial and business loans have their own amortization methods, there are several types of amortization that you'll want to be aware of when it comes to consumer loans.

If you want to change your mortgage amount or amortization period at renewal time, you must refinance with your current lender instead.

Types of Amortizing LoansAuto loans. An auto loan is a loan taken with the goal of purchasing a motor vehicle.Home loans. Home loans are fixed-rate mortgages that borrowers take to buy homes; they offer a longer maturity period than auto loans.Personal loans.

Shorter Amortization Periods Save You Money If you choose a shorter amortization periodfor example, 15 yearsyou will have higher monthly payments, but you will also save considerably on interest over the life of the loan, and you will own your home sooner.

Beating the amortization table saves you money by lowering the amount you pay on interest over the life of the loan.Make an extra payment each year.Convert to a bi-weekly payment schedule, which results in one additional mortgage payment a year.Refinance your loan.Inquire about a Principal Reduction Modification.

An amortizing loan is a type of debt that requires regular monthly payments. Each month, a portion of the payment goes toward the loan's principal and part of it goes toward interest. Also known as an installment loan, fully amortized loans have equal monthly payments.

Options to pay off your mortgage faster include:Adding a set amount each month to the payment.Making one extra monthly payment each year.Changing the loan from 30 years to 15 years.Making the loan a bi-weekly loan, meaning payments are made every two weeks instead of monthly.