By Investment U Research Team If you have ever had to pay back a loan, you have already experienced amortization. When you get a loan, the lender spreads out your repayment amount over a series of fixed payments. Once you finish this payment schedule, your loan is officially paid off.
How Does Amortization Work?
Basically, amortization allows you to pay fixed payments until a loan is paid off. Each time you make a payment, a portion of your payment covers the loan’s principal. The rest covers the interest costs. While you pay more interest costs initially, your payments will gradually focus on principal as you pay off …read more
