Definition - What does Amortization Schedule mean?
An amortization schedule is a schedule that expresses the details of how a loan will be paid off. Amortization schedules typically show the amount of interest and principle that will be due at certain time periods. In the context of insurance, many people buy mortgage insurance to help protect against the risk of defaulting on an amortized mortgage loan.
Insuranceopedia explains Amortization Schedule
Amortization schedules are very important for people who have amortized loans. The reason is because the payment values can change significantly from each period in the amortization schedule. It is very helpful for amortized loan borrowers to fully understand these value changes while they are paying back their loan. This can help them prevent default or other repayment mistakes. If they do, however, mortgage insurance can help prevent the lender from losing all of its money,