Amortization schedule tracking tools
Frequently Asked Questions
Straight answers to the questions we hear most.
An amortization schedule is a table that shows the breakdown of each monthly mortgage payment throughout the life of the loan. It details how much of each payment goes toward paying down the principal balance versus how much goes toward paying interest. Early in the loan, a larger portion of each payment goes toward interest.
An amortization schedule is a table that shows the breakdown of each payment into principal and interest over the life of the loan. When you make an extra principal payment, you effectively “re-amortize” the loan, moving you ahead on the schedule and reducing the total number of future payments.
A recast directly changes your amortization schedule. After the lump-sum payment is applied, the lender creates a brand-new schedule that spreads the remaining principal balance (plus interest) evenly over the remaining loan term. This results in a lower portion of each future payment going toward interest and a higher portion going toward principal than in your original schedule at the same point in time.
The Loan Estimate is the opening offer, and the Closing Disclosure is the final statement. You will receive the Closing Disclosure at least three business days before your closing. This form should be very similar to your initial Loan Estimate, allowing you to verify that the terms and costs are what you agreed upon.
An escrow overage occurs when there is more money in your account than is needed to pay the bills. If the overage is $50 or more, your servicer is required by law to issue you a refund check within 30 days of the annual escrow analysis. If the overage is less than $50, they may refund it or apply it to your next year’s escrow payments.
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