Interesting Vs capital off your mortgage

[tom1ie]

Hi all
Just a thought that's being going around my head the last couple of days, it could be complete nonsense so apologies in advance .

I'm in the process of my 3rd switch (aib-ebs-aib-ub) and I'm wondering when a mortgage is initially taken out interest is front loaded right? As in for the first X amounts of years the monthly repayments predominantly go off mortgage and the rest of capital. As time goes on this ratio is reversed .
So if I am constantly switching mortgages, am I inadvertently resetting the interest portion back to high that comes out of my monthly payment, or am I talking crap?
Thanks all
Tom.

Ps sorry about the thread title, bloody auto correct. I do t know how to change it either!

 

[dub_nerd]

Short answer: no, you are not adversely affecting your paydown rate. An amortised loan with constant repayments works as if you were starting from scratch every month. The amount that comes off your principal is determined only by the rate and the remaining term, at each point along the way.

 

[tom1ie]

Short answer: no, you are not adversely affecting your paydown rate. An amortised loan with constant repayments works as if you were starting from scratch every month. The amount that comes off your principal is determined only by the rate and the remaining term, at each point along the way.

Yes thanks for that I presumed this was the answer but I wasn't 100% sure .