08/05/2026
Amortization can be a beautiful thing once you understand it.
Every fixed rate payment stays the same for 30 years. But what’s inside that payment changes every single month. Early on, you’re mostly paying the bank. Later, you’re mostly paying yourself.
The “crossover point” is the month principal finally beats interest. Your rate decides when that happens:
🔹 2.50% — **2 years, 4 months**
🔹 4.00% — **12 years, 9 months**
🔹 6.00% — **18 years, 7 months**
🔹 7.00% — **20 years, 2 months**
At 6%, that very first payment is 83% interest. Only 17 cents on the dollar touches what you actually owe.
Sounds brutal and it is….but the schedule works both ways. 👇
Here’s the beautiful part: Every extra dollar you send toward principal doesn’t just reduce your balance. It permanently deletes all the future interest that dollar would have carried. You skip ahead in the table. Your crossover point moves *forward*. Your payoff date moves *closer*.
Same payment. Same rate. Different outcome because you understood the math.
💡 **Ways to use it:**
▪️ One extra payment a year
▪️ Round up to the next hundred each month
▪️ Apply a tax refund or bonus straight to principal
▪️ Set up bi-weekly payments with your lender
Want to see what extra payments would do to your loan? Let’s run the numbers. 📲
Chart and post inspiration courtesy of ResiClub
Tisha Borda | Mortgage Broker
NMLS #257773 | 661-330-1424
