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Mortgage interest is often described as a rate — but that rate alone doesn’t explain how a mortgage behaves over time. In this episode of Behind the System, we explain how mortgage interest is calculated, how it accrues, why early payments are weighted toward interest, and how interest fits into the broader mortgage system alongside amortization and escrow. This video explains how the system works. It does not offer financial advice or recommendations. In this episode: • What mortgage interest represents • How interest is calculated on a loan balance • Why early payments include more interest • The difference between interest rate and APR • How interest interacts with amortization and payment timing This is an explanation of mortgage mechanics — not guidance or strategy.