re: Home Equity question

quote:

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Well I am completely wrong then... I did not know that your actual interest payments could change from month to month if you paid more down on your principal.

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To put it simply, your mortgage is $1,000/month. You make your first payment and $950 goes toward interest and $50 goes toward principal. The 2nd month, $948.25 goes toward interest and $51.75 goes toward principal and so on.

Just a very simplistic answer that does not take escrow into account.

ETA: So if you make additional payments toward principal, it will knock the interest payments down even further each month.