front load the interest
No. That's not how amortization works. You borrow 300k you are paying interest in 300k. You pay it down to 150k you are paying interest on 150k. You pay it down to 20k you are paying interest on 20k.
You're not wrong BUT since the repayment schedule is arranged so that the interest is preferably paid down first that means the principal remains high until towards the end of the term. In this way the bank maximizes the amount of interest they earn over the term because, as you mention, you pay interest on the remaining principal https://budgeting.thenest.com/frontloaded-mortgage-work-24047.html
As the article points out mortgages don't have to be front loaded but they usually are.
Paying off the mortgage early is the way to minimize the interest this but you need to make sure that your mortgage includes provisions to increase the regular payment amount and to pay down the principal without penalty at specific intervals.
I have no idea what the fuck I am reading. You borrow amount X at rate Y and pay back in Z months. You pay interest on your outstanding principal. There isn't interest that accumulates month over month. I haven't had a mortgage with a prepayment penalty but I also haven't had a mortgage above 4% either.
(post is archived)