How does my mortgage payment break down?

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I know that a large part of a mortgage payment goes toward the interest on the loan. So how much of what I owe on my house is interest and how much is principal? When I make my payment, it says I owe a certain amount in total. Is that the principal or the principal PLUS the interest? I'm just wondering because I read a couple articles lately that suggested that even paying an extra $100 on your monthly mortgage payment would pay off your house a lot quicker, however, I can't see that an extra $100 a month would make THAT much difference if the amount I see that I owe is all principal.

For instance, if I owe $200,000 on my loan and I pay say $1500 a month on my mortgage payment, adding another $100 a month is going to be about an extra $1200 a year. How is that going to result in any significant savings? Can someone explain this to me please? Thanks!

How does my mortgage payment break down?

Your mortgage payment always includes (1) repayment of principal and (2) interest. It may also include amounts to pay your real estate taxes, mortgage insurance, etc. To get a breakdown of this ask your lender to give you a detailed statement.

Now, let's just talk about interest and repayment of principal.

When you first start paying off your mortgage, almost all of each payment goes for interest. The reason is that the amount on which you pay interest is the full amount of the loan. A small amount of the money goes to reducing principal.

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How does my mortgage payment break down?

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