Most homeowners believe they’re steadily paying down their house. But if you’ve ever looked closely at your loan statement, you’ve seen it — that tiny portion that actually touches principal.

The rest? Interest.

In the early years of your mortgage, up to 75% of every payment goes directly to the bank’s profit column, not your equity.

That’s not just unfortunate — it’s intentional.

Because amortization was designed for predictability, not speed.

It keeps banks profitable for decades and homeowners believing they’re making progress when, mathematically, they’re mostly treading water.

“The system rewards consistency — but only on their balance sheet.”

Amortization is a word that sounds complex on purpose.

It comes from the Latin amortire — meaning “to kill off slowly.”

That’s exactly what your loan does: it kills off your balance, one small payment at a time — slowly.

Each month, your interest is recalculated on the remaining balance.

So early on, when your balance is highest, your interest charge is also highest.

That’s why your payment doesn’t change, but your progress does.

In month one, your payment might send $400 to principal.

In month 200, it might send $800.

Same payment — different outcome.



The longer you stay, the more they earn.