People vs Banks

[Charles Brown <cbrown@xxxxxxxxxxxxxxxxx>]

Isn't the rule that mortgage payments are high proportion paid to interest and low proportion paid to principle in early payments an arbitrary exercise of banking power ? If higher proportions of early payments were used to pay off the principle, the principle would be paid off sooner and the total amount of interest paid over the whole mortgage would be less than under the current rule.

 

We need a law that the proportions of each mortgage payment attributed to principle and interest should be the same as the proportions of the interest rate to the principle.

 

If the Interest rate on a mortgage is 7%, then each mortgage payment should be divided up 7 parts to interest to 100 parts to principle.

 

Charles