Do some research about amortization, then you will have a better understanding. On the surface the formulas may seem foreign, but knowing how they are derived will help you see the amortization process. You can go to various websites to get amortization tables that depict the loan process or using a spreadsheet you can construct your own. But it is also useful to know how it is done mathematically since it has an impact on your money. I'll give you some items to research. Amortization, Present Value, Future Value, Amortization, Negative Amortization, Reverse Mortgage, and Annuities. If you understand Mathematics at the level of Algebra 2 , then you can understand the mathematical processes involved. You can also express mathematically how long it takes to pay off an amortized loan by making an additional partial payment each month, and save in finance charges. I believe it is vital to have this knowledge, since it does have an impact on your money. Let me know your level of Mathematical understanding, and I'll give you information on how you to guide you. Mathman99