Paying more interest at the start of the mortgage?

William_Mateless

One thing I have never understood about mortgages (repayment), if at the beginning of the loan you are paying mostly interest and not repaying a lot of capital, why is it a good idea to remortgage every few years to get a cheaper rate? Surely you are just postponing the time that you actually get into the time period when you make a dent in the capital

roswell

the lower the rate the more of your capital is paid off if you still keep paying the same amount (in effect an over payment) the reason you pay more interest at the begining of the morgage is because you owe the most at the begining as the amount you owe decreases so you pay more off the capital.