The loan amortization calculator, creates the spreadsheets of principal, interest, and balances on each payment period, provides a big picture on how the mortgage will turn out. The mortgage payment covers the principal and interest. In the life of mortgage, the balance decreases as the borrower makes regular payment. Thus, the borrower sees for any chance of negative amortization. A negative amortization is a point in time when the payment is not enough to cover the principal and interest.

To a mortgage dictionary, the amortization means the repayment of mortgage thru installments of regular payments. And, the loan means the sum of money that lender lends to the borrower to be repaid on a specified period. It is also good to know principal, and interest rate which are use to calculate the mortgage payment. The principal means the face value of the mortgage, while the interest rate means percentage of the balance to be paid.