[{"data":1,"prerenderedAt":516},["ShallowReactive",2],{"term:amortization":3},{"term":4,"related":507},{"id":5,"title":6,"body":7,"category":490,"description":491,"extension":492,"faq":493,"meta":494,"navigation":495,"path":496,"related":497,"seo":500,"stem":501,"takeaways":502,"__hash__":506},"terms\u002Fterms\u002Famortization.md","Amortization",{"type":8,"value":9,"toc":483},"minimark",[10,15,19,22,26,356,476,480],[11,12,14],"h2",{"id":13},"understanding-amortization","Understanding Amortization",[16,17,18],"p",{},"With an amortizing loan, such as a typical mortgage or car loan, each payment is the same, but the split changes over time. Early payments are mostly interest; later payments are mostly principal.",[16,20,21],{},"An amortization schedule lists every payment and how much goes to interest and principal. 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",[27,360,362,375],{"className":361},[34],[27,363,365],{"className":364},[38],[40,366,367],{"xmlns":42},[45,368,369,373],{},[48,370,371],{},[51,372,53],{},[113,374,53],{"encoding":115},[27,376,378],{"className":377,"ariaHidden":121},[120],[27,379,381,384],{"className":380},[125],[27,382],{"className":383,"style":130},[129],[27,385,53],{"className":386,"style":136},[134,135]," is the monthly payment, ",[27,389,391,404],{"className":390},[34],[27,392,394],{"className":393},[38],[40,395,396],{"xmlns":42},[45,397,398,402],{},[48,399,400],{},[51,401,60],{},[113,403,60],{"encoding":115},[27,405,407],{"className":406,"ariaHidden":121},[120],[27,408,410,413],{"className":409},[125],[27,411],{"className":412,"style":130},[129],[27,414,60],{"className":415,"style":159},[134,135]," the loan amount, ",[27,418,420,433],{"className":419},[34],[27,421,423],{"className":422},[38],[40,424,425],{"xmlns":42},[45,426,427,431],{},[48,428,429],{},[51,430,68],{},[113,432,68],{"encoding":115},[27,434,436],{"className":435,"ariaHidden":121},[120],[27,437,439,443],{"className":438},[125],[27,440],{"className":441,"style":442},[129],"height:0.4306em;",[27,444,68],{"className":445,"style":216},[134,135]," the monthly interest rate, and ",[27,448,450,463],{"className":449},[34],[27,451,453],{"className":452},[38],[40,454,455],{"xmlns":42},[45,456,457,461],{},[48,458,459],{},[51,460,90],{},[113,462,90],{"encoding":115},[27,464,466],{"className":465,"ariaHidden":121},[120],[27,467,469,472],{"className":468},[125],[27,470],{"className":471,"style":442},[129],[27,473,90],{"className":474},[134,135]," the number of payments.",[11,477,479],{"id":478},"example","Example",[16,481,482],{},"A $400,000 loan at 6.5% for 30 years has a monthly payment of about $2,528.27.",{"title":484,"searchDepth":485,"depth":485,"links":486},"",2,[487,488,489],{"id":13,"depth":485,"text":14},{"id":24,"depth":485,"text":25},{"id":478,"depth":485,"text":479},"personal-finance","Paying off a loan in regular installments that cover both interest and principal.","md",[],{},true,"\u002Fterms\u002Famortization",[498,499],"mortgage","annual-percentage-rate",{"title":6,"description":491},"terms\u002Famortization",[503,504,505],"Amortizing loans have fixed payments that cover interest and principal.","Early payments are interest-heavy.","Extra principal payments save interest.","5EQcOaO3aDLrbRGhWAaWkAkPAE7dcpUZ-JTuW7W0UCI",[508,512],{"title":509,"description":510,"path":511},"Annual Percentage Rate (APR)","The yearly cost of borrowing, including interest and certain fees, as a percentage.","\u002Fterms\u002Fannual-percentage-rate",{"title":513,"description":514,"path":515},"Mortgage","A loan used to buy property, with the property itself as 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