1. The problem asks: How does an amortization schedule help borrowers understand their loan repayment plan? 2. An amortization schedule is a table that shows each loan payment broken down into principal and interest components over time. 3. It helps borrowers see how much of each payment goes toward reducing the loan balance (principal) and how much goes toward interest. 4. This schedule also shows the remaining loan balance after each payment, helping borrowers track their progress. 5. By understanding this, borrowers can plan their finances better and see the impact of extra payments. 1. The problem asks: How does the down payment amount affect the mortgage amount and monthly payments? 2. The down payment is the initial amount paid upfront when buying a home. 3. A larger down payment reduces the mortgage amount because the borrower needs to borrow less. 4. Since the loan amount is smaller, the monthly payments will also be lower. 5. Conversely, a smaller down payment means a larger loan and higher monthly payments. 6. Therefore, the down payment directly influences the size of the mortgage and the affordability of monthly payments.