The "Front-Loaded" Interest Trap
Most home buyers don't realize that in the first few years of a 30-year mortgage, the vast majority of their payment is profit for the bank (interest), not equity for them.
For a standard $300,000 loan at 7%, your first payment might be $2,000, but only about $250 of that actually reduces your debt. This calculator visualizes that reality.
How to Beat the System: Extra Payments
Pro Strategy
Just ONE extra payment per year can knock 4 to 5 years off a 30-year mortgage and save you tens of thousands of dollars in interest. The extra money goes 100% towards principal.