What is a Loan Schedule?
A loan schedule is a report that gives details about loan repayment, usually in regard to a mortgage or other structured interest loan. There are several items listed in a loan schedule, including the principal, or the amount of money owed. This figure is the amount of the loan after the down payment has been subtracted. The loan schedule also lists the interest rate and shows how much interest in included in each payment. A loan schedule is intended to give both borrower and lender a good record of the particular terms and conditions of the contract at a glance. Sometimes called an amortization schedule, it details how many payments are required to pay off the loan in full, the frequency of the payments, and how much principal and interest is paid down with each timely payment. Amortization is a calculation, which divides the principal by the number of months allowed for repayment of the loan. The interest is then calculated in accord with the length of the loan and the current rate.
