treatment of mortgage balance
I noticed a disparity in the treatment of mortgage balances and would like to understand why this is done.
In reviewing the detailed results, I noticed that the housing tab shows the mortgage on my current home will decrease far more than the principal I am paying each year. After reviewing this forum, I realize now that the large decreases are due to the effect of inflation on the real value of the mortgage. Thus, a mortgage balance of $300k and an annual principal payment of $2k will result in a balance of around $289k the following year ($300k - $2k principal - $9k inflation).
But when I change homes 5 years down the line, I notice that the value of my new mortgage no longer decreases beyond the principal I pay in any given year. Why doesn't the future mortgage decrease to reflect the effect of inflation (as happens with my current mortgage)? To return to the example above, a balance of $300k and a principal payment of $2k results in a balance of $298k the following year, instead of the expected balance of $289k.
Why the difference in treatment of mortgage balances between current and future mortgages?