Amortization Plans

Amortized plan: This plan offers payments with increasing principal amounts and decreasing interest amounts. For fixed-rate loans, the payment amount remains equal for the term of the loan. For other pricing options, the payment amount will change when/if the interest rate changes.
Equal Principal plan: Each payment consists of a fixed principal amount plus interest that has accrued on the unpaid balance. This plan results in faster principal reduction, thus less interest is paid over the term of the loan. Payment amounts are initially higher, but decline over the term of the loan.