Under the terms of most fixed and variable-rate mortgage loans the monthly payments in the early life of a loan go almost entirely to pay the interest on the loan.

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In the early stages of a fixed or variable-rate mortgage, the majority of the monthly payment is allocated towards paying off the interest rather than the principal. This is due to the amortization schedule used by these loans, where earlier payments are heavily weighted towards interest.

Under the Terms of Most Fixed and Variable-Rate Mortgage Loans