What is a loan amortization schedule, and what are some ways these schedules are used?

Respond to at least two fellow students’ posts.
Reinforce their work, add additional information, or ask for clarification in regards to their answer.
Each response should be 100-150 words.

responds 1
5-8: What is a loan amortization schedule, and what are some ways these schedules are used?

I think that some ways that these loan amortization schedules are organized are the same as loans. You use these for everything that you have financed. I know that me and my husband have vehicles, our med spa, and our brand-new construction loan that we have right now since we are building a house. These are also things that you can count as investments that you pay over a span of up to 3o years depending on what you are financing. An amortized loan is, “a loan that is repaid in equal payments over its life,” (Brigham, 2014, p. 172). You most of the time pay a monthly payment for your loans over a 30 yar agreement. There is also quarterly and yearly options if this were to occur, but this also depends on what you are financing. When it comes to amortized loans this can be repaid in equal amounts and the payments can be in any form from quarterly, month and even yearly depending on what you are going to be financing since there are certain rules that you can do when it comes to financing things. Cars are usually the shorter ones such as the quarterly or monthly to where it some cases you can pay your house payment yearly or every month depending on what that looks like and for what amount. This are mostly short amounts but on big purchases can be pretty big which would of course make it be a longer time frame when it comes to financing something.There are so many different options when it comes to financing and loans. I have had to have a couple my self with cars and my house so far. This is something is in most peoples live with must have one or the other at some point.

Reference

Brigham, E. F., & Houston, J. F. (2016). Fundamentals of financial management. Boston, MA, USA: Cengage Learning

responds 2
5-8 What is a loan amortization schedule, and what are some ways these schedules are used?

An amortization schedule is a complete table of loan payments paid periodically, showing the amount of principal and the amount of interest that cover each payment until the loan is paid off at the end of the term. While each periodic payment is the same amount early in the schedule, most of each payment is interest; later in the schedule, most of each payment covers the loan’s principal. The last line of the schedule shows the borrowers total interest and principal payments for the entire loan term.

Auto loans are amortized loans that you pay down with a fixed monthly payment. In fact, some people, including buyers and auto dealers, think of buying an auto in terms of the monthly payment alone. Longer loans are available, but you risk being upside-down on your loan, meaning your loan exceeds your car’s resale value if you stretch things out too long to get a lower payment. Plus, youll spend more on interest.

Home loans are usually15-year or 30-year fixed rate mortgages. Most people do not keep a loan for that long they sell the home or refinance the loan at some point but these loans work as if you were going to keep them for the entire term.

Personal loans that you get from a bank, credit union, or online lender are generally amortized loans as well. They often have three-year terms, fixed interest rates, and fixed monthly payments. These loans are often used for small projects or debt.

Kagan, J. (2007, May 9). Amortization Schedule. Retrieved from
https://www.investopedia.com/terms/a/amortization_schedule.asp

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