When using a mortgage interest calculator you can be able to see exactly how much of the payment goes to interest. You would see that especially in the beginning of your mortgage you are paying mostly interest and paying little capital off the total.
If for example you have an interest rate of 5% you would be paying 5% on the total outstanding amount. This would mean that as your outstanding mortgage gets less you would be paying less interest and more capital each month. This is because your total payment will normally stay constant.
They structured a mortgage in such a way that in the beginning you will pay mostly interest and pay very little off the outstanding amount. Very few people knows this. As time goes on your mortgage gets reduced and you pay less interest and more off the mortgage. The interest part and the capital payment part will add up to give a constant monthly payment.
What this means is that in order to reduce your mortgage fast and pay a lot less interest it is wise to pay as much extra as you can especially in the beginning of your mortgage. By doing that you will be paying a lot less interest to capital and that reduces the mortgage.
When you use a mortgage interest calculator you can be able to see exactly what part of your payment would be interest and what would be capital. This is a very nice tool in order to make wise decisions about how much you are going to pay each month. You will be able to see the total interest you will have to pay. You can also see what part of your payments up to now have been going to interest.
A mortgage calculator could be one of the most vital tools on your way to debt elimination.
