Proper understanding of the mortgage amortization schedule is important for the mortgage acquirer. Mortgage payments comprises of a breakup of interest and principal relating to the mortgage. An insight of the amortization schedule enables the loan borrower to determine the time and amount of the repayment. It can also help the borrower to ascertain that how much payment and in how much time period, can relieve the borrower from the mortgage.
It removes the confusion regarding the amount of repayment and the borrower can check whether the correct amount of repayment is monthly quoted by the lender and that the interest rate is correctly applied. It helps to analyze the amount of interest which can be saved, early payment of the principal leads to interest savings and an early repayment of the loan. The mortgage amortization schedule helps to identify the amounts which can be saved and the appropriate time for early repayments.