Home Payments Equals Equity?

Maybe.

If you have an interest only mortgage then no equity is generated (it's 100% interest). If you have a negative amortization loan, the payment doesn't even cover the interest and your loan balance increases every single month (which is why they are so bad).

In a normal 30 year, fixed interest rate loan each payment is part interest and part principal. The principal payment should increase the amount of equity. The big problem is that early on with a 30 year mortgage, the payments is ~80% interest. A loan doesn't become half interest and half principal until there are about 8 years left on the loan.

The other assumption here is that the house value remains the same. If the house value decreases, this would reduce the equity in the property. On the other side, if a house goes way up in value, there is 'equity' because it's increased in value.

So, house payments = equity isn't so simple and clear. It certainly isn't a 1:1 relationship. Making a $1000 payment doesn't increase equity by $1000 (probably closer to $250).

good luck!

The first 10 years usually most of your payment will be paying off the interest on the loan. You should have received an amortization chart when you got your loan documents signed at closing. This would tell you month by month exactly how much was being put towards principle and interest.

Most of your house payment goes toward the payment of interest, especially in the first few years of the loan. If you want to know exactly how much, you should plug in your loan info in any one of the online amortization calculators.