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> Even the amortization schedule is weighted to benefit the banks. Can you explain this or say what the alternative amortization schedule might be? In a norma
by mhb 7y ago
> Even the amortization schedule is weighted to benefit the banks.
Can you explain this or say what the alternative amortization schedule might be? In a normal mortgage, the initial payments are more interest because you're paying interest on more principal.
- chimi 7y agoYou got it already! Imagine if most of that first payment went to the buyer's equity instead of interest.
- DuskStar 7y agoThen the first payment would have to be much larger, because the amount going to interest is determined solely by the interest rate and principal.
- deleted 7y ago[deleted]
- nradov 7y agoYou're always free to make additional equity payments. Modern mortgages don't have prepayment penalties.