Abstract: A “principal priority reduction” mortgage which provides both a method to reduce interest paid at a given interest rate and to increase a homeowner's equity rapidly in an otherwise conventional loan scenario. Included is a method for calculating and implementing same. Loan payments are applied to principal due first, while interest accrues and is paid only after the full reduction of the principal. The method may provide an investment vehicle which has particular interest to a certain category of montage investor.

Abstract: A method for calculating a mortgage which provides application of mortgage payments to principle first and then interest in the amortization schedule of repayment of a conventional loan is disclosed. The disclosure provides a method for calculating mortgage payments on a conventional mortgage loan by applying such payments first to reduction of principle while accumulating accrued interest. Payments are applied towards accrued interest after the principle amount of the loan is reduced.