Why Does The Interest And Principal Paid On My Mortgage Vary So Much From Month To Month?

If you have an amortized loan with a fixed APR for your mortgage loan, then you will have an amortization schedule for your payments. In the early stages of your mortgage you will pay more for interest, since the interest is a percentage of your balance. As the balance decreases your interest decreases. If you view an amortization schedule for your mortgage you will find that the amount applied to your principle increases as the amount of your interest payments decreases.

If your mortgage loan is for $200,000 with a fixed APR for 360 months at 6%.

Your monthly payments will be $1,199.10. Your interest payment made for your first month will be$1,000, and the amount applied to your principle will be $199.10. After your 300th payment the amount of your payment applied to interest is $310.12, and the amount applied towards your principle is $888.98.

If you construct an amortization schedule using spreadsheets you will be able to observe this mathematical process.

You can also visit the website  bankrate.com if you want to view amortization schedules

Note: The figures given are rounded to the nearest hundredths place

Can i pay on the interest only if i dont have my full payment