What to Look for in an Amortization Table
A good amortization table should give you all the basic information you could possibly need to know about the progress of a loan be paid throughout its term. The information a good amortization table gives you will show you how much interest your paying on the loan and how quickly you're paying down its principal.
An amortization table needs to have information put into it before can't output of table. Hopefully, you won't have to gather too much information. All an amortization table really needs to know to be built properly, is the amount or original principal of the mortgage, the interest rate of the loan or mortgage and the length of the mortgage.
After the table has been built, you can find how far into the loan you are by looking at what payment you have just paid. Still, to build the table you would enter in the original amount borrowed, not the amount you currently owe.
Naturally, to build an amortization table you have input the interest rate. This is self-explanatory. However, if it is a negative amortization table, you'll need to find some place online that will build a negative amortization table. The reason a negative amortization table is different, is there are two different interest rates involved. One interest rate is for the beginning part of the mortgage and usually lasts for a term of 3 to 5 years. The second interest rate is for the remainder of the lone.
Finally, an amortization table needs to know how long the loan is for. Again, not how much longer you have to pay, but the original term of the loan.
The finished amortization table doesn't necessarily have to be a table. We think of a table as a spreadsheet, perhaps like an Excel spreadsheet. This is not necessary. However, a good amortization table can be printed out in simple sentences where each sentence includes the payment number, the total principal owed after the payment, the principal paid for in this payment and a running total of the interest paid on the loan to date.
There is another type of amortization table, which is known as a payment breakdown amortization table. This will print out the principal paid for each payment and interest paid for each payment instead of a running total of the interest.
Another thing to think about is the cost. Of course, there are several places that you can get to use amortization table software without paying money for it. However, make sure there aren't any strings attached. For instance, you don't want to have to give anyone your phone number to use their amortization table software because you know you'll get phone calls from throngs of mortgage brokers trying to sell you their mortgages.
There is an excellent Amortization table on this site. The link is below. For negative amortization tables, we recommend visiting ezcalculator.com. Ezcalculator has a negative amortization table and it is free to use. All their calculators were built by real estate investors who have no interest in getting personal information about you. In other words, they won't be trying to sell you a mortgage. The site, ezcalculator.com does have advertisements on it, but that's as far as they will go in trying to sell you anything.