Financial and banking websites often provide customizable loan amortization table apps, such as the one at Bankrate. Other sites that offer such apps include myAmortizationChart.com, Amortization-calc.com and AmortizationTable.org.
Amortization means to pay off the principal of a loan gradually through regular payments, according to Wikipedia. An amortization table is a customized chart that shows each payment on an amortizing loan, which includes how much of the payment goes toward the principal balance and how much goes toward the interest, says myAmortizationChart.com. Customizable, Web-based apps allow users to input the amount of the loan, the interest rate and the term of the loan in order to receive a personalized amortization table.
The biggest advantage of amortized debt is that with each payment made the borrower builds equity in the asset, says Demand Media's Karen Rogers. After the final payment is made, the borrower owns the asset. If the loan has a fixed interest rate, the borrower’s payment always remains the same.
The biggest disadvantage to this type of loan is that the payments are sometimes quite high because the borrower pays both the interest and principal at the same time. If the debt has a high interest rate, and interest rates drop, the borrower still ends up paying a high interest rate, says Karen Rogers.