Lower capital reduction

Mikey481

Sanity check needed from mortgage pros please
As interest rates were increased in the last few years obviously monthly payments increased.
My question is should the amount of capital reduction each month decrease surely this should remain constant as a minimum Many thanks

Hoenir

Plug your numbers in and see the results. Ignore the $ signs. 

https://www.calculator.net/amortization-calculator.html

BikingBud

A good discussion here: https://www.mortgageretirementprofessor.com/how-mortgage-payments-are-calculated/

Mikey481

Thank you all so the situation can occur but will ultimately resolve itself at the end of the term ? 

MWT

Mikey481 said:

Thank you all so the situation can occur but will ultimately resolve itself at the end of the term ? 

Yes, it will all still get you to zero at the end of the term.

Hoenir

Mikey481 said:

Thank you all so the situation can occur but will ultimately resolve itself at the end of the term ? 

Your repayments will be adjusted, as interest rates move both up and down, to repay the capital owed over the contractual term of the mortgage. 

TrickyDicky101

Mikey481 said:

Sanity check needed from mortgage pros please
As interest rates were increased in the last few years obviously monthly payments increased.
My question is should the amount of capital reduction each month decrease surely this should remain constant as a minimum Many thanks

You have your answer provided by others above but as I recently became aware such mortgages with equal capital repayments at each date do exist particularly in the Benelux countries.  There they are referred to as Linear Repayment Mortgages (as opposed to Annuity Repayment Mortgages which is what we typically have in the UK).