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!