A time table of mortgage payments over the course of a loan that shows how much is applied to both the principal and interest.

An amortization schedule gives a breakdown of your monthly payments in principal and interest. During the early years of your mortgage, the bulk of your payments go to interest. So, even after 10 years of fixed payments on a 30-year loan, you've only made a small dent on the debt.

You can use an amortization schedule to figure out the equity you gain during your mortgage term. The longer you own a house, the more equity you gain. But, if you don't plan on keeping your home for very long, the equity can still increase due to other factors, such as appreciation and capital improvements.

Example: How much of a $1,000 fixed monthly payment goes to the principal and interest?

1st Year				30th Year