Total interest payments refer to the sum of all interest paid, or to be paid, over the life of the loan or up to a specific date.
It will be able to quickly show a borrower how much interest charges in total he will have to pay on a mortgage if he holds onto it up till maturity.
A comprehensive amortization table should be able to break down everything for a borrower to scrutinize.
Simple interest refers to an interest structure of a product where interest is not compounded.
Simple interest is a method of calculating and charging interest in the simplest form. One where consumers often think is used for their personal loans, credit cards, etc.
For example, a 4% simple interest rate on a $100,000 principal will result in an interest charge of $4,000 a year.
The loan amount refers to the amount of money the borrower has legally promised to repay to the lender.
While the total loan amount is the total amount of money borrowed from a lender at the point of loan closing, it refers to the total outstanding due at any point in time when it is referenced during the term of the loan.
For example, if a borrower has taken up a $100,000 mortgage for 30 years, when the loan amount is looked up on the 5 year, the loan amount refers to the outstanding loan balance at that point in time. Which might be $75,000.
The interest rate is the annual rate charged by lenders for the loans borrowers take up.
Although it is usually expressed as a percentage, sometimes they can use the unit of point as well.
For example 1 point will mean 1%.