Amortization is the banking term for paying off a loan over time. Understanding what it means and how it works can help you keep track of what you owe and where your money is going.
Loan amortization is what we call Citi calls the process paying off a loan over time. When you get a mortgage, you'll make a payment every month. At first, most of your payments will go toward interest. As the amount you owe gradually goes down, more of your payments will go toward principal. By making regular payments over the lifetime of your loan - also known as the amortization period - your balance will eventually reach $0. When it does, your mortgage will be amortized - meaning it's been completely paid off.
Time is a big part of amortization. That's why your amortization schedule can be so helpful: a single payment might not seem like it affects your loan that much, but each one you make brings you one step closer to being mortgage-free.
Choose a year and month for a detailed breakdown of your monthly payment.
Remaining loan amount
The term of your loan might say 15 or 30 years, but you can pay it off sooner if you want to. By making extra payments on top of your regular monthly payment, you can lower the amount of interest you pay over your loan's lifetime. This means a larger share of your monthly payments will go toward your loan's principal - allowing you to pay off your mortgage earlier.See the difference extra payments can make
Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta. Además, es posible que algunas secciones de este website permanezcan en inglés.
Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account. Additionally, some sections of this site may remain in English.
Citi is not responsible for the products, services or facilities provided and/or owned by other companies.