Understanding the payment schedule of a mortgage loan is required for your correct performance as a debtor. Here is a description of all the important aspects that are present in this schedule.
Mortgage credit data is shown at the top of the payment schedule, where general credit information is summarized. The form as shown varies according to the format used by each banking institution, although the information presented is always the same.
Among the credit data are:
- Credit Amount It is the capital granted by the institution on loan condition.
- Term The number of fees you must cancel.
- Interest Rate Two values are shown; Annual Effective Rate (TEA) and Annual Effective Cost Rate (TCEA). The first only includes the cost of the loan, and the second adds to this value the administrative cost.
The schedule itself is a table of values, where in each row the information corresponding to a particular quota is shown. Each column or field contains certain information about the credit status in that installment.
Again, you will get variants in the way the column is presented, according to the financial institution that generates the schedule. Although again, the information given is basically the same.
The fields are as follows:
- Quota Number It is the ordinal of the fee considered, starting with the payment or down payment you gave to obtain the mortgage loan.
- Fee . Monthly amount to be paid for the loan in the respective installment.
- Balance It represents how much capital you still owe on the credit, after canceling the respective fee. This amount is how much you should cancel if you wish to advance the entire payment of your debt, provided that it does not generate penalties.
- Amortization It is the amount of the fee that is dedicated to cancel the capital received on loan. In the first installments it is low, and it is increasing towards the final installments.
- Interest . It is the amount of the fee that is dedicated to paying off the interest on the loan. In the first installments it is high, and it is decreasing towards the end of the term.
- Insurance If you have contracted the insurance of deduction and of all risks with the same institution, you will see in these columns the payment for the respective product.
- Penalty for non-payment . Here it is reflected how much you must pay as a penalty for not having made your payment on time.
- Interest composed of non-payment . The penalty is double, since in addition to the previous payment, you must assume the payment of an interest composed of your default.