## amortization related definitions

**amortization**- The balance of a loan declines by the scheduled periodic payment amount and the amount of any extra (not scheduled) payment. For a detailed explanation of the amortization process and amortization schedule visit the main page of this website.**amortization calculator**- An amortization calculator helps to determine the periodic (e.g.: monthly) payment amount due of an amortizing loan (or mortgage) and to generate and amortization schedule base on the process of amortization.**amortization chart**- This chart contains and visually displays the content of an amortization table. Shows the percentage change of interest and principal during the life of a loan and the remaining balance of course.**amortization schedule**- This table shows the details of every single periodic payment during the life of the loan and is generated by an amortization calculator. These details are the interest paid, principal paid and remaining balance. Also called as amortization table or amortization chart.**amortization table**- Same thing as the amortization schedule. The details of every payment is braken down in interest and principal.**annual percentage rate**- APR is the acronym for Annual Percentage Rate. Before this regulation rates were often quoted in a misleading way. Finally a Federal Government law was created to protect the consumers from deceptive manners. It helps people to compare lending fees and charges, interest and other costs. The Annual Percentage Rate includes origination fees, charges and other financial points and the interest on the loan as well all in an annual percentage rate. Because of this the Annual Percentage Rate is usually higher than the loan's interest rate itself.**balance**- Balance or outstanding balance is the actual amount of owed money that remains in a loan account at a given date. The outstanding balance of a loan changes every time you make a payment.**debt**- When a lender lends a sum of assets a debt is created. Debt is the amount of money which is owed and is usually granted with expected repayment.**interest**- Is a compensation paid to the lender for the use of borrowed assets (money). A fee paid to rent money. Computed by the interest rate and usually expressed in dollars.**interest rate**- This is the rate paid by the borrower every single period for the use of the lenders money. Usually it is expressed in percentage. For example an interest rate of 12% means a monthly rate of 1% per month.**lender**- The person or financial institution who lends out money to borrowers for a cost paid on the borrowed money (see interest for more information).**loan**- Type of debt.**mortgage**- Type of debt.**payment**- The transfer of a money amount from one person to another person or company. Usually this means a weekly, bi-weekly, monthly, bi-monthly, quarterly, semi-annually or annually mortgage/loan payment.**principal**- This is a portion of a periodic payment that reduces the outstanding loan balance. If you have the ability always reduce the remaining balance so the interest portion will be smaller (you will save money).**period**- This could be a weekly, bi-weekly, monthly, bi-monthly, quarterly, semi-annually or annually period. This means the time interval when you have to make a payment.**periodic payment**- A payment made on a specific date scheduled by the payment periodicity.**remaining balance**- Same as balance or outstanding balance.**starting date**- Starting date of a loan is exactly one period after the contract was signed. E.g.: for a loan taken on 01/01/2010 the starting date (the first payment) will be on 02/01/2010