X

What's coming up next year for mortgage rates... the Fed... housing markets... home prices? See HSH's 2022 Outlook for our expectations!

What's coming up next year for mortgage rates... the Fed... housing markets... home prices? See HSH's 2022 Outlook for our expectations!

When will I begin paying more principal than interest?

Keith Gumbinger

Q: I have a 30-year fixed rate at 3.5 percent. When will my payment include more principal than interest?

A: In a fixed-rate mortgage, the amount of your monthly payment will not change, but the composition of the payment will over time. The tipping point for a fixed-rate mortgage--when the payment becomes more principal than interest--is a function of the interest rate and term. You might be surprised to find that the amount of the loan doesn't come into play at all!

In your case, a 3.5 percent 30-year fixed mortgage rate will see a payment comprised of equal parts principal and interest at about payment number 120. If your rate was 3 percent, that would move up to about payment number 84. If it was 4 percent, you would be waiting around until payment number 154, about 13 years after you began making payments.

ATE Graph

To see this for any loan, you can use HSH.com's Mortgage Calculator. Below the calculator, click on the "Amorization Schedule" tab, then scroll down to the year displayed where total annual principal and interest payments are pretty close (the calculator's payment component chart can help you here, too), then open up the year to find the exact payment when balance is achieved.

If you prefer a print-and-take away version for your files, you can use our mortgage calculator's to print the amortization schedule you created. This will give you a side-by-side breakout of principal and interest, including the payment number.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
Submitting your question...

Question received! Check back later to see if your
question gets published.

Q: What loan amount does a mortgage need to be for it to be considered a Jumbo Loan?
JAN 03, 2022
A:

This question used to have a simple answer, since there was a "bright line" definition -- the conforming loan limit....

Read More
Q: What is the cost of getting a mortgage loan?
NOV 11, 2021
A:

 Costs and fees can vary depending upon lender policies and certain of the choices you make when you get your loan...

Read More
Q: What is the down payment required to get a mortgage these days?
NOV 03, 2021
A:

A: While some 100% financing may be available...

Read More
Add to Homescreen?
X
X
Install this web app on your phone :tap and then Add to homescreen