What is an amortization schedule?

An amortization schedule is a detailed table that outlines the repayment amounts for a loan over time, specifically for each period of the loan. It typically breaks down each payment into the portions that go toward interest and principal reduction. This tool is crucial for borrowers as it provides a clear view of how their payments will be structured throughout the life of the loan, including how the outstanding balance decreases over time. By consulting the amortization schedule, borrowers can better understand the total cost of their loan, how long it will take to pay it off, and how much interest they will pay over the life of the loan. This insight is beneficial for financial planning and management.

The other options do not accurately define what an amortization schedule entails. For instance, a list of properties available for sale pertains to real estate listings rather than financing details. A summary of borrower credit history relates to the borrower's creditworthiness but is not associated with loan repayment schedules. A record of lender fees associated with a loan pertains to the costs involved in obtaining the loan but does not reflect repayment terms or amounts. Thus, the description provided in the correct answer is the only one that correctly identifies the function and structure of an amortization schedule.