An amortization table is a detailed schedule that outlines each payment of a loan over time, showing how much of each payment goes toward interest and how much goes toward reducing the principal balance. For a mortgage of $250,000 at an interest rate of 3.75% amortized over 25 years, the monthly payment can be calculated using the formula for a fixed-rate mortgage. The first payment will consist of a larger portion going toward interest, and as payments continue, the interest portion will decrease while the principal portion increases. This is due to the way interest is calculated on the remaining balance of the loan. By the end of the first year, the table will provide a clear view of how much of the original loan amount has been paid down and what the remaining balance is.