Keith

If you make additional home loan paymentsYour primary payment can compoundIn the sense that a lower outstanding balanceWill lower each subsequent interest paymentHowever, if you paid an extra $100 each month on top of your required home loan payment, the primary portion would begin compounding. In month one, you 'd pay $1,532. 25, with $1,000 approaching interest and $532.

This would not offer any additional benefit in the very first month since you 'd merely be paying $100 additional to get $100 more off your primary balance. what are the interest rates on 30 year mortgages today. Nevertheless, in month 2 the overall interest due would be calculated based upon an exceptional balance that is $100 lower. And since payments don't alter on a mortgage, even more money would approach the principal balance.