Amortization Explained: Why Interest Is Higher Early in Mortgages

Mortgage payments consist of interest and principal, with early payments mostly covering interest and later ones reducing principal. Fixed-rate mortgages have equal payments but changing interest-to-principal ratios, while variable rates adjust with market changes. Making extra payments or refinancing can lower total interest but may involve penalties. Amortization schedules detail payment breakdowns over the loan term, typically 15, 20, or 30 years.