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Types of Amortizing LoansAuto loans. An auto loan is a loan taken with the goal of purchasing a motor vehicle.Home loans. Home loans are fixed-rate mortgages that borrowers take to buy homes; they offer a longer maturity period than auto loans.Personal loans.

An amortizing loan is a type of debt that requires regular monthly payments. Each month, a portion of the payment goes toward the loan's principal and part of it goes toward interest. Also known as an installment loan, fully amortized loans have equal monthly payments.

Options to pay off your mortgage faster include:Adding a set amount each month to the payment.Making one extra monthly payment each year.Changing the loan from 30 years to 15 years.Making the loan a bi-weekly loan, meaning payments are made every two weeks instead of monthly.

The main difference between the two types of schedules is the level of detail. The amortization schedule breaks down a payment into the amount you pay toward interest and the amount you pay toward the principal, but the payment schedule does not.

With a specified loan amount, the number of payment periods, and the interest rate, an amortization schedule identifies the total amount of the periodic payment, the portions of interest, the principal repayment, and the remaining balance of the loan for every period.

The key feature of amortization is that the loan is paid off on a particular timetable through regular payments designed to meet that schedule. That doesn't necessarily mean that all the payments will be equal, although they often are.

Beating the amortization table saves you money by lowering the amount you pay on interest over the life of the loan.Make an extra payment each year.Convert to a bi-weekly payment schedule, which results in one additional mortgage payment a year.Refinance your loan.Inquire about a Principal Reduction Modification.