Fair enough, but I wasn't actually talking about early payoff penalty. I was speaking to the payback schedule that the loan company has you reimburse them with.

You pay your loan back on a monthly basis. In the earlier years, each monthly payment goes (for example) 80% to interest owed, and 20% owed to principal. Usually around the last fiveish years mark, your payment is applied 10% interest, 90% principal. The bank/loan giver makes sure they get their profit from offering you the loan in the earlier years. In other words, each monthly payment by you is NOT going 50%/50% interest/principal.

Don't get me wrong though, its ALWAYS good to pay off your loan early, from a total $ amount paid when you are done point of view. But if you take ten years to pay off a fifteen year loan, you've paid off most of the interest owed already, where if you pay off a fifteen year loan in five years you've paid less interest owed, % wise.

(The time frames I mention above is estimates for sake of this discussion, YMMV for your actual load, but the principal of what's being said is valid.)