<prompt> Human: I posted this as a reply in a previous thread, but it didnt get answered.Here is my understanding of how it would work. Is this correct?Say I have a 30 year mortgage and Im only going to own for 7 years. If I were to make additional payments on the mortgage, the payments would go toward principle, and the bank is not going to re-amortize the loan based on the reduced principle. Now, if I were to pay down early for the entire 30 years, then yes, I would end up paying off the principle balance early and save the interest charges at the back end at that point, a relatively small part of my payment. However, if I end up selling after only 7 years, Ive still paid just as much in interest payments as I would have if I was only making the minimum payments. Sure, the check to me at closing is larger, but the money I put into paying down the mortgage has not grown any. If I put an extra 10,000 into early payments over 7 years, then I only get 10,000 back at closing.Is this correct?  <response>: If I put an extra 10,000 into early payments over 7 years, then I only get 10,000 back at closing. Is this correct?No, the interest is generally calculated daily or monthly which means that each month you overpay, the total interest charges go down since you now owe less. Since you have lower interest payments the amount you pay towards the principal goes up each month. 