A mortgage balance changes as you make scheduled payments because each payment is generally divided between interest and principal. Early in a typical amortizing mortgage, a larger portion of the payment goes toward interest. As the outstanding balance decreases, more of the scheduled payment can go toward principal. An amortization schedule can show this progression month by month or year by year, allowing you to see how quickly your balance is expected to decline. Extra principal payments can accelerate that process and may reduce the total interest paid. Our amortization calculator can help you see how payments are distributed and how the remaining balance changes throughout the loan. If you are considering additional payments, compare the standard schedule with an extra-payment scenario to understand how much sooner you may reach a lower balance or completely repay the mortgage.
