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More Principal Than Interest

June 2nd, 2015 at 05:32 am

Our (hopefully) final mortgage payment on this home posted yesterday. After almost three years, our interest was less than the principal portion of the payment! A low interest rate (2.75%) and making extra principal payments has helped get us there.

Specifically the interest portion was $485.96, but the principal portion was $487.70. A difference of just $1.74, but I'm celebrating this fun milestone regardless!

Do you have a mortgage where the interest portion of your payment is less than the principal portion?

The reason I mentioned this should be our last payment on the mortgage is that we are nearly 100% sure we are delayed on closing by a week. All due to the incompetence of the buyer's agent.

5 Responses to “More Principal Than Interest”

  1. laura/deacon's wife Says:


    Yay for you! Fun numbers. Smile
    We aren't near that yet on our mortgage, but we our equity in the house and what we owe are nearly 50%-50%. Value: $500K, owe $249.9K. And we could of course sell the rental property and mortgage free, but we're not there just yet.

  2. MonkeyMama Says:

    Nice to get one of those "more to principal" payments in!

    I don't remember when we will get there with our mortgage, but not very long with low interest rates. We do pay more principal than interest anyway, with extra principal payments.

  3. snafu Says:

    Phenomenal numbers since you've only been in that that home for such a short time! You put a lot of time into finding and effectively using Snowflakes/extra income which was 100% devoted to paying down your mortgage principal. WOW! the focus was remarkable and so are the results.

    I've so wished mortgage grantors included an amotorization printout with their paperwork that showed the breakout of principal, interest and 'other' so that their client could easily track their balance owed.

  4. VS_ozgirl Says:

    Just last month our interest was $584 and the mortgage payment was $1029, so 56% was interest of that payment. However because we paid our previous mortgage payment of $1178, the interest component of that was 49.57%. Was a lovely surprise as I'm sure you can relate!

  5. bluesfemme Says:

    Nice CFC Smile And I totally agree snafu - once you focus on the monthly interest you devote much attention to reducing it! I've created so many calcs on a spreadsheet tracking our new horrendously high mortgage. First month interest - $40.85/day!

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