In the amortization of a mortgage loan with equal payments, the fraction of each payment devoted to interest steadily increases over time and the fraction devoted to reducing the loan decreases steadily.

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This is because in the early years of the mortgage, the outstanding loan balance is high, so the interest portion of each payment is larger. As the loan balance is paid down over time, the interest portion of each payment decreases and the portion devoted to reducing the loan increases.

In the Amortization of a Mortgage Loan with Equal Payments