Midway through the life of an amortized loan, the percentage of the payment that represents interest must be equal to the percentage that represents repayment of principal.This is true regardless of the original life of the loan or the interest rate on the loan.

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In an amortized loan, the interest portion of the payment decreases over time, while the principal portion increases. This means that midway through the life of the loan, the payment is not equally divided between interest and principal; rather, more of the payment is applied towards the principal than at the beginning of the loan.

Midway Through the Life of an Amortized Loan, the Percentage