Amortization is the schedule of a homeowner’s monthly mortgage loan payments. An amortization schedule shows you how much of their monthly mortgage payment goes to interest and how much to principal. Near the beginning of a loan’s term, most of the monthly payment will be applied to the interest and a smaller portion to the principal balance. As the homeowner continues to make payments, the monthly amount going toward interest will decrease and a greater share of the payment will be put towards the mortgage balance.