Published on Jan 5, 2015
Mortgage amortization tells you how much of your monthly mortgage payment is interest and how much is principle each month. The principle is the total loan amount that you borrow for your mortgage, and the interest is the percent of that principle that you pay in order to borrow the money. So, for example, if you have a 30-year fixed mortgage at 4.00%, you would get an amortization schedule of every payment over the 30-year mortgage period. Each month would be broken down into how much interest and how much principle is paid each month.
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