During your first year on a 30 year fixed mortgage, nearly 70% of your mortgage payment of $477 will go to interest alone.
While it feels like interest is reverse compounding when nearly 70 percent of your payments are going toward interest in year one.
Over the past several years, mortgage tenure has increased from about six years to 10 years.
First, interest rates are usually nearly a whole percentage point lower on a 15 year fixed mortgage than a 30 year fixed mortgage (it’s been closer to .75% recently).