Amortization Schedule.

An amortization schedule is a complete table of loan payments showing, for each period, how much goes toward interest and how much reduces principal. Early payments are heavily weighted toward interest; over time, the principal component grows as the outstanding balance shrinks. Reviewing the schedule before signing reveals the total interest cost over the loan life — a figure that often surprises borrowers. Making extra principal payments shrinks that total interest and shortens the payoff timeline, with the most savings early in the loan.