The Standard Amortization Table at the right is a schedule for the payments of a $100,000 mortgage at 6% interest rate fixed for 30 years. Only the first 12 months of payment are shown. To pay off the mortgage to zero there would be 360 payments. Space does not permit all 360 payments to be shown. However, the important fact to be noticed is the interest represents most of the payment in the early monthly payments. Actually, the ratio between the payment and the interest is approximately 20:1.
This means the Banker/Lender receives $20 for ever $1 of credit you receive from your payment. This is typical of most mortgages.
STANDARD AMORTIZATION TABLE
Month Interest Principal Balance
1
$500.00
$99.55
$99,900.45
2
$499.50
$100.05
$99,800.40
3
$499.00
$100.55
$99,699.85
4
$498.50
$101.05
$99,598.80
5
$497.99
$101.56
$99,497.24
6
$497.49
$102.06
$99,395.18
7
$496.98
$102.57
$99,292.61
8
$496.46
$103.09
$99,189.52
9
$495.95
$103.60
$99,085.92
10
$495.43
$104.12
$98,981.79
11
$494.91
$104.64
$98,877.15
12
$494.39
$105.16
$98,771.99
Bank's Money
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