Which method is commonly used to calculate the remaining balance on a mortgage?

The amortization schedule is a commonly used method to calculate the remaining balance on a mortgage because it provides a detailed breakdown of each payment made over the life of the loan. This schedule outlines how much of each payment goes toward the principal and how much goes toward interest.

By using an amortization schedule, borrowers can easily track the outstanding balance at any point in time, as the schedule reflects the decreasing principal amount with each periodic payment. Additionally, it illustrates how the composition of the payments changes over time, with a larger portion initially going toward interest and a greater proportion eventually going towards the principal as the loan matures.

This method stands out in the context of mortgage calculations because it not only helps in determining the remaining balance but also assists homeowners in understanding the timeline of their mortgage payments and financial obligations.