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What is the reason that initial monthly payments towards a mortgage mostly goes to the interest and then later on, the payment goes to the principal? Is it designed this way for the benefit of the bank or the benefit of the home owner?In the same vein, why making a lump sum payment goes towards the principal?

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    I don't think this is really a duplicate of the other question because it relates to the normal payments and not additional ones. Whilst the two do have similar answers for similar reasons, they have slightly different starting points. – GS - Apologise to Monica Jan 6 '14 at 7:05

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