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Mortgages always have more interest paid in the first years of the loan. Eventually, that switches to mostly principle toward the last few years. For more information on mortgage amortization, go to http://www.quickenloans.com/calculator or http://www.quickenloans.com/blog

Amortization is a scale that tells you how much of your monthly mortgage payment is being applied to your principal loan amount (the total amount of money you’re borrowing), and how much is being applied to the interest (the percentage of the principal you’re going to pay over the life of the loan).

At the beginning of the loan, a greater portion of your monthly payment goes toward paying down the interest. The interest is calculated off the principal balance of your loan, so as the principal goes down during the life of the loan, so will the interest. As you get closer to paying off the loan, more of your monthly payment will go toward the principal and less toward the interest.

Check out the Quicken Loans Amortization Calculator to see how your monthly payments will be applied to your principal and interest throughout the life of your loan. If you like what you see, there’s plenty more where that came from! Subscribe here. Looking for a mortgage? Get started today!

This Post Has 14 Comments

  1. I currently have a conventional loan but I am VA eligible. I know I can get a lower interest rate with a refinance using a VA refinance loan. Can Quicken help me obtain a VA refinance as I would rather stay with Quicken or do I need to go elsewhere?

    Frank Loy

    1. Hi Frank! Quicken Loans® is actually the #1 VA lender. I’ve passed your comment on to our mortgage experts who will reach out soon.

  2. The explanation sounds like you are using simple interest. Early on I was told that my interest was precalculated, and It did not reduce principle when I paid extra on each payment. If I do not pay simple interest, what do I pay?
    Fred Graves

  3. Is there a chart for paying biweekly? And how much quicker will paying biweekly save on a 15 year loan months,years. Thank you.

  4. I have 4% interest. I was told by a representative of Quicken Loans® a few months ago that at this rate, I should not try to refinance because closing costs, etc. would add up to more money I would have to pay out. Is this correct since I’m as am getting several emails per day from others wanting me to refinance at the lower rates that are out there now.

    Thank you

    1. Hi Helen! I’ve passed this on to our client care team. They can take a look at where you are now and be able to advise.

  5. I would like to get an amorrization chart, does Quicken loan put these together for thier customers which I am, if they do I would appreciate one for my loan.

    Thank You

    1. Hi Cheryl! Typically on a conventional loan you will no longer have to pay PMI once you have 20% equity in your home. On an FHA loan, mortgage insurance premium stays on your loan unless you refinance into a conventional loan program.

  6. Which is the fastest way to pay off your home loan:
    1. Make 2 half payments each month that total the full payment due?
    2. Add additional principal to each month’s payment so that an extra payment is made each year?
    3 Selecting a 15 or 20 year payment schedule?

    1. Hi Geneva! The best way to see what works for you is to plug the numbers into the amortization calculator and see how aggressive you can be with your payment while keeping your payment in a comfortable range and still achieving your goal of paying off your home faster.

  7. Will like to know how ref with out paying the extra insurance PMI the tv commercial talks about thanks 609 780 3858

    1. Hi Jose! I’ve passed your comment on to our team of mortgage experts who can explain in further detail. They’ll be reaching out soon.

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