Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

loan-amortization schedule

Read a random definition: government-securities interdealer broker

A quick definition of loan-amortization schedule:

A loan-amortization schedule is a plan that shows how each payment made towards a loan is divided into two parts: interest and principal. At the beginning of the loan, the interest part is usually the largest, but it decreases over time. The purpose of the schedule is to help borrowers understand how much of their payment goes towards paying off the loan and how much goes towards interest. Negative amortization is when the monthly payments are not enough to cover the accruing interest, causing the loan's principal balance to increase. Amortization can also refer to the process of spreading out the cost of an intangible asset, like a patent, over its useful life.

A more thorough explanation:

A loan-amortization schedule is a plan that divides each loan payment into two parts: the interest component and the principal component. The interest component is the amount of money that goes towards paying the interest on the loan, while the principal component is the amount of money that goes towards paying off the loan itself.

Typically, the interest component is the largest part of each payment at the beginning of the loan and gradually decreases over time. This means that more of each payment goes towards paying off the loan as time goes on.

For example, let's say you take out a $10,000 loan with a 5% interest rate and a 5-year term. Your loan-amortization schedule might look something like this:

PaymentInterestPrincipalBalance
1$41.67$166.67$9,833.33
2$40.97$167.37$9,665.96
3$40.26$168.08$9,497.88
4$39.54$168.80$9,329.08
5$38.81$169.53$9,159.55

In this example, each payment is divided into an interest component and a principal component. At the beginning of the loan, the interest component is larger than the principal component, but over time, the principal component becomes larger as more of the loan is paid off.

Loan-amortization schedules are important because they help borrowers understand how much of each payment is going towards interest and how much is going towards paying off the loan. This can help borrowers make informed decisions about their finances and plan for the future.

loadsman | loan association

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Dkk
19:36
Stay off reddit. It will do this to your brain:
19:37
google contracted with reddit to train their ai how people talk. lol the 'ai future' is going to be full of search results FED REDDIT POSTS. unplug the internet now! https://www.reuters.com/technology/reddit-ai-content-licensing-deal-with-google-sources-say-2024-02-22/
Google AI is actually pretty cool though. Only when its actually accurate though.
19:40
by pretty cool, do you mean smug pseudo intelect?
Dkk
19:40
THE INTERNET WAS A MISTAKE. END IT NOW.
Dkk
19:40
Google AI kept telling me schools were not binding ED when they were. Really annoyed me.
Dkk
19:41
Yeah, when accurate it is nice.
this election has the potential to push america further into ultranationalist populism
Dkk
19:42
Maybe, didnt happen last time.
19:42
it was hard to not improve it. google search was terrible due to the ads and seo cheaters with buzz words and alt text
Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
LSD+ is ad-free, with DMs, discounts, case briefs & more.