Does anyone know the answer to this? - My first mortgage statement was generated on 11/2 with a due date of 12/1 and includes a month of interest based on the balance on 11/2. I made a principle only payment on 11/14 of $500 which was applied right away. Will the interest automatically recalc to reflect a lower outstanding balance for a portion of the month? I plan to do this every month.

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Typically mortgage interest is calculated based on the average outstanding principal balance the prior month. So yes the system will factor it in. But if your first statement was generated 11/2 then I assume you closed on the house on 10/2 or before; usually the accrued interest through the first statement date is projected and paid at closing. And the 11/2 statement will be charging you for October interest accrued. In any case the payment should stay the same but over time the system should shift interest v principal accordingly though as you pay down the balance.

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It shows the breakdown between P & I. I will make sure to check once the next statement is posted how it actually allocates it. Thanks for the input!

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I was under the impression that the amortization table is fixed. Meaning interest payments are unchanged even if you pay down principal faster. Exceptions being if your lender allows you to recast your mortgage or you refinance.

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