Why does principal& interest vary over the period of a mortgage loan?
Principal and interest amounts vary during the course of a mortgage loan because a mortgage is front-loaded with interest, meaning the first installment payment includes the most interest, and the amount of interest paid each month gradually decreases.FunctionPrincipal and interest are calculated using an amortization table, which itemizes how much of each monthly payment goes toward the principal and interest, respectively.BenefitsPaying interest on the front-end of a loan ensures that the lender makes a profit from interest before applying larger amounts of each payment toward the principal.Additional PaymentsDepending on your mortgage terms, you may be able to make additional payments solely to the remaining principal or interest balance on the loan. For example, if your account is in good standing and you make your current monthly payment, you could make an additional payment of $1,000 and designate it to be applied to the principal balance, thus lowering the principal and the amou
