Based on the loan amortization for below housing loan.
Loan amount: RM100,000
Loan tenure: 30 years
Loan interest rate: 4.5%
I found out that:
First 10 years – we pay 50% of total interest
Second 10 years – we pay 36% of total interest
Third 10 years – we pay 14% of total interest
OR in other words
First 10 years – we only pay principal of RM19,991 or 20% of RM100k
Second 10 years – we only pay principal of RM31,200 or 31% of RM100k
Third 10 years – we only pay principal of 48,890 or 49% of RM100k.
In short, we make the bank rich first then only then we pay our debt.
| Beginning Balance | Interest | Principal | Ending Balance | |
| 1 | $100,000.00 | $3,967.95 | $1,761.09 | $98,238.96 |
| 2 | $98,238.96 | $3,896.19 | $1,832.85 | $96,406.18 |
| 3 | $96,406.18 | $3,821.53 | $1,907.51 | $94,498.73 |
| 4 | $94,498.73 | $3,743.82 | $1,985.22 | $92,513.56 |
| 5 | $92,513.56 | $3,662.94 | $2,066.10 | $90,447.51 |
| 6 | $90,447.51 | $3,578.77 | $2,150.27 | $88,297.29 |
| 7 | $88,297.29 | $3,491.15 | $2,237.89 | $86,059.47 |
| 8 | $86,059.47 | $3,399.97 | $2,329.07 | $83,730.48 |
| 9 | $83,730.48 | $3,305.09 | $2,423.95 | $81,306.59 |
| 10 | $81,306.59 | $3,206.35 | $2,522.69 | $78,783.96 |
| 11 | $78,783.96 | $3,103.56 | $2,625.48 | $76,158.55 |
| 12 | $76,158.55 | $2,996.62 | $2,732.42 | $73,426.17 |
| 13 | $73,426.17 | $2,885.29 | $2,843.75 | $70,582.48 |
| 14 | $70,582.48 | $2,769.43 | $2,959.61 | $67,622.93 |
| 15 | $67,622.93 | $2,648.85 | $3,080.19 | $64,542.80 |
| 16 | $64,542.80 | $2,523.36 | $3,205.68 | $61,337.18 |
| 17 | $61,337.18 | $2,392.76 | $3,336.28 | $58,000.96 |
| 18 | $58,000.96 | $2,256.84 | $3,472.20 | $54,528.82 |
| 19 | $54,528.82 | $2,115.38 | $3,613.66 | $50,915.22 |
| 20 | $50,915.22 | $1,968.16 | $3,760.88 | $47,154.39 |
| 21 | $47,154.39 | $1,814.93 | $3,914.11 | $43,240.34 |
| 22 | $43,240.34 | $1,655.46 | $4,073.58 | $39,166.83 |
| 23 | $39,166.83 | $1,489.52 | $4,239.52 | $34,927.36 |
| 24 | $34,927.36 | $1,316.79 | $4,412.25 | $30,515.16 |
| 25 | $30,515.16 | $1,137.01 | $4,592.03 | $25,923.21 |
| 26 | $25,923.21 | $949.95 | $4,779.09 | $21,144.17 |
| 27 | $21,144.17 | $755.23 | $4,973.81 | $16,170.42 |
| 28 | $16,170.42 | $552.61 | $5,176.43 | $10,994.04 |
| 29 | $10,994.04 | $341.70 | $5,387.34 | $5,606.76 |
| 30 | $5,606.76 | $122.23 | $5,606.81 | $0.00 |