Amortization Schedules Template (Loans, Mortgages, LC, Bonds, Leases)

Description
Amortization refers to the process of paying off a debt (often from a loan or mortgage) over time through regular payments. A portion of each payment is for interest while the remaining amount is applied towards the principal balance. The percentage of interest versus principal in each payment is determined in an amortization schedule. The schedule differentiates the portion of payment that belongs to interest expense from the portion used to close the gap of a discount or premium from the principal after each payment.
While a portion of every payment is applied towards both the interest and the principal balance of the loan, the exact amount applied to principal each time varies (with the remainder going to interest). An amortization schedule indicates the specific monetary amount put towards interest, as well as the specific amount put towards the principal balance, with each payment. Initially, a large portion of each payment is devoted to interest. As the loan matures, larger portions go towards paying down the principal.


This template includes 5 different examples of Amortization Schedules as well as a Line of Credit Calculator


Contents:
• Standard Loan including Interest Only Period option
Amortization Schedule of a fixed-rate loan including an optional interest-only (IO) period.  
Loans with an IO period allow borrowers to make payments, for a certain number of years, that include interest only (no principal). The result is a lower payment during the first few years (or months) of the loan.


• Home Mortgage
Amortization Schedule of a fixed-rate or variable-rate Home Mortgage. 
The schedule offers users the option to add extra payments and/or balloon payments and calculates how much borrowers can save on interest by making extra payments. It analyses Lenders Yield (APR) as well as the outstanding balance at the end of a specified number of years.


• Line of Credit Calculator
A user-friendly designed for lenders or borrowers to track or service a line of credit account.
It allows users to enter draws and payments or changes in interest rate on the actual dates they occur and calculates interest ad principal paid and total LC amount due.


• Bond Amortization Schedule (Effective Interest Rate method)
The effective interest method involves preparing a bond amortization schedule to calculate the interest expense based on the market rate at the time the bond was issued and the bonds book value. This interest expense is then compared to the actual interest payment based on the face value of the bond and the bond rate, and the difference gives the amount to be amortized to the interest expense account.


• Operating and Finance Leases Amortization Schedules
Amortization Schedules of Operating and Finance Leases including assumptions for Lease Term, Borrowing Rate, BoM or EoM payments, Lease Costs & Incentives. Each schedule also includes supporting Amortization Journal Entries for Income Statement and Balance Sheet.


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