Westmark Credit Union
We are a full-service financial institution, owned by our members & committed to the development of their financial future. We have 12 convenient locations.

Understanding Loan Amortization

When you make loan payments, a section of the payment will be dedicated to the principal balance, and the rest will be allocated to the interest that has accumulated on the loan. The process of spreading out the principal over the life of the loan is called amortization, and it’s explained further in this video. However, with amortization, you end up paying more of the interest of the loan early on and more of the actual balance later. This can impact your decision to refinance a loan, because refinancing too soon into the life of the loan may only increase the amount of interest you pay.

To learn more about how loans work and the types of loans available to assist in your financial goals, connect with Westmark Credit Union. We offer banking services throughout Idaho, and you can reach us by calling (208) 523-1071.

Categories: loan amortization

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2520 Channing Way
Idaho Falls, ID 83404

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