What is Amortization Schedule?
A table showing each periodic payment on a loan broken down into principal and interest components over the life of the loan.
Amortization Schedule in commercial lending practice
In commercial lending, amortization schedules are a standard exhibit attached to credit memos. They establish the borrower's expected debt service obligations period by period, which feeds directly into DSCR calculations and stress testing. CRE deals frequently amortize on a longer schedule (e.g., 25 years) than the loan matures (e.g., 5–10 years), creating a balloon payment at maturity that the credit memo must address explicitly.
Related terms
Related concepts in commercial underwriting
Balloon Payment
A large lump-sum payment due at the end of a loan term when the amortization period exceeds the loan maturity.
Read definitionDSCR (Debt Service Coverage Ratio)
The ratio of net operating income (or available cash flow) to total annual debt service, including principal and interest payments.
Read definitionDebt Yield
The ratio of a property's net operating income to the total loan amount, expressed as a percentage.
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How Amortization Schedule shows up in AI underwriting
Aloan automates the underwriting analysis where amortization schedule matters — spreading, global cash flow, credit memo generation — with source-cited audit trails on every figure. See it run on a real deal in your standardized format.
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