Mortgage Tip: Mortgage payments

How are the payments split between interest and the principal amount?

 

For each payment the money is first used to pay the interest. Within the first years, your principal amount may decrease by only a small amount. As your mortgage balance decrease over time, more of your payment is used to pay off the principal amount.

Tip:

The key to saving money is to pay off the principal amount as fast as you can, if possible.  Even a little bit extra on your monthly payment will make a difference!

Original article from: www.fcac-acfc.gc.ca