Lenders compare interest rates and loan payments by using amortization tables, charts that show the amounts of principal and interest due at regular intervals. You can use amortization tables to help you compare loans (most lenders will give you one if you ask).

As you look down the amortization table, you will see that initially, most of your payments are only for interest. As the payments continue, you will begin paying less interest and more towards the principal. You can also use amortization tables to compare differences in monthly payments with different interest rates.