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I have noticed recently that my fixed rate HELOC seems to have varying amounts of principal applied. This was a secondary mortgage (fixed rate HELOC) on my original home loan from years ago using an 80/10 split to avoid PMI.

The monthly amount is $480.22

2 months ago, at the bottom of the statement it said:
Payment applied as follows: Principal $237.24, Interest $242.98

Then this month it says:
Payment applied as follows: Principal $127.60, Interest $352.62

That low amount of principal caught my eye as I was under the impression that this fixed rate loan should have a steadily increasing amount of principal (and decreasing interest).

What gives?
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