Mortgage Basics

Mortgage Amortization Explained

Why early payments feel like they don't touch the balance.

4 min readUpdated 2026Mortgage Basics

Interest first, principal second

Amortization allocates each payment between interest and principal. Early on, interest dominates. Over time, principal takes over.

Extra principal accelerates payoff

Even small extra principal payments in the early years dramatically shorten your loan and reduce total interest.

Key takeaways

  • Extra principal early = big long-term savings.

Frequently asked questions

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