Texas Amortization Calculator

An amortization calculator details the ratio of interest to principal paid by each mortgage payment as it’s laid out in an amortization schedule. Amortization, or the process of making payments towards a loan or mortgage where a portion of each payment goes to both the interest and the principal, is dictated by a schedule that decides how long it takes to pay off a loan and when your payments are due. Typically, the first half of the amortized loan payments go to interest and it’s only until the latter half of the life of the loan that the majority of the principal is paid off.

By using our amortization calculator it’s easy to determine the length of your loan, your monthly payment, and exactly how much that payment will go towards paying interest and how much will go towards your actual principal. There are multiple types of amortization including straight line (where payment is completely linear), annuity, and bullet (where payment happens all at once). There is also negative amortization which occurs when a payment is less than the interest of the particular period and the total amount of the loan increases. Negative amortization typically occurs as an introductory phase in the life of a mortgage and rarely lasts more than five years.

    Figuring out your loan schedule, how much you will pay each period, and how much of that payment will go to principal and interest, are three key things that are essential to planning your financial future. Our amortization calculator provides a simple, straight-forward way to determine all of these important factors and decide what plan is best for you.