# AJAX Powered Mortgage Calculator

This new amortization schedule generator uses PHP and AJAX to deliver a seamless user experience.

Using an amortization calculator can help you understand how your principal can decrease over the life of your loan. This unique calculator can compute how much of your payment goes to the principal and how much will go to the interest on a yearly basis. The results are usually depicted in a graph or chart where you can easily see how your loan principal changes as months pass by.

With the use of this calculator, an abbreviated table or graph can be provided that allows you to oversee the principal of your loan for over 30 years. The graph will show how your principal will eventually get smaller until you have already paid your loan in full. Most graphs will indicate several terms that you should know including the starting principal, the interest, the payment, and the principal. The starting principal is the one that shows the principal of your loan at the start of the year before you made any type of payment. The payment is the one that shows the amount of money that you need to pay the bank in principal and interest for the entire year. This rate does not include your property insurance or your property tax.

The third term that is commonly used in translating the results of an amortization calculator is the interest. The interest reveals the amount of money from your payment that will go towards paying the interest to the bank. As the years pass by, you will notice that the amount of interest paid to the bank will eventually decrease until the entire loan is already paid in full. The last term is the principal. The figure under the term principal indicates the amount of your payment for the year that will be deducted from the initial or starting principal of your loan. Although your annual payment remains constant, the ratio of the payment that will be deducted from the starting principal will increase as each year pass by. On the other hand, the portion of the payment that goes to the interest will decrease. These are just some of the terms that you should know with regards to your mortgage amortization. With the help of amortization calculators, it would be easy for you to stay in touch and updated with your monthly and annual payments.