Do you just pay the same amount for say a 25 year term give or take interest rates?
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There are two kinds of mortgages: fixed and variable. That’s whether or not the interest rate is… fixed or variable.
With a fixed rate, you pay the same amount every month for the term of the mortgage. If you choose to pay more than that amount, you’ll pay it off quicker. As long as the bank gets their money every month, they don’t really care.
With a variable rate, you pay according to a formula which includes the interest rate. They’re more complicated, but you’re still allowed to make extra payments to pay it off quicker.
Ultimately a mortgage is a contract between the bank and the individual. It can be as complicated or as simple as the two parties want it to be. The precise terms are negotiable.
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