what is an amortization schedule 
an amortization schedule illustrates how a borrower s payments are applied to the principal and interest on a loan over time with fully amortized loans the bulk of interest payments are made earlier in the loan term with more of the payment going toward the principal as you get closer to the end of the loan can you pay off a fully amortized loan early yes if your lender allows it paying off a fully amortized loan ahead of schedule could save money on interest keep in mind however that your lender may apply a prepayment penalty to recoup any lost interest if you decide to pay a loan off early 