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Amortization - Principal vs Interest
 
Calculator Works Worldwide
 
Amortization is the repayment of a loan through monthly installments of principal and interest. This payment is based on a timetable such that by the end of the period (example 30 years) the entire loan will be paid off. There are also many amortization calculators available that will graph out exactly how much money you pay each year towards principle and interest. It is a very enlightening to see how much extra payments save you in interest payments over the life of your loan.
 
 
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