The Amount of Interest Paid on a 30-Year Mortgage

If you’ve ever had a 30-year mortgage, you may remember the feeling of opening your first bill.

We had a relatively low interest rate historically at 6% though that seems ridiculously high in this age of low interest rates.

During your first year on a 30 year fixed mortgage, nearly 70% of your mortgage payment of $477 will go to interest alone.

How Much Interest Will You Pay During the First Years of a 30-Year Mortgage?

Keep in mind this doesn’t include taxes or insurance, which are typically included as escrow in your mortgage payment as well.

While it feels like interest is reverse compounding when nearly 70 percent of your payments are going toward interest in year one.

Is a Mortgage Compound or Simple Interest?

Over the past several years, mortgage tenure has increased from about six years to 10 years.

How Long Do People Keep Their Mortgage?

Locked into historically low interest rates, homeowners are less likely to refinance a new mortgage. They may also not be able to upgrade to a new home with a higher interest rate.

Swipe Up To Learn More 

MORE STORIES

Should I Pay Off My Mortgage? 5 Reasons Why It Makes Sense

21 Effective Ways to Save Money for a House