I tried going to a site with an amortization calculator but when I applied an extra payment per year it only reduced the payoff by a month or two. That doesn’t seem right.
178,000.00 balance
approx 1,400.00 per month
3.75% interest
Hirebook, As I said I did use a calculator but it just didn’t seem like it reduced it by any length of time. I know if you make an extra payment per year on a 30 it reduces the payoff time by almost a 3rd.
I only have 12 years left but would like to pay it off in 7 by making extra payments and would like to start this year by catching up to where I would be had I started 3 years ago and continue for 7 more.
I hope that makes sense.
If your loan balance at end of year 3 is close to $147,000, paying an minimum of an extra $600 a month should get you very close to paying it off by your 120th payment. The balance remaining after 120th payment would be approx. $9480.
Microsoft has some free & very nice amortization Excel spreadsheets that allow you to factor in extra payments, whether it a fixed extra amount of payment of it varies.
http://office.microsoft.com/en-us/templates/results.aspx?qu=loan+amortization&av=TPL000
I frequently use the one at the top of that link.
what was the intitial loan balance as well the monthly mortgage payment??? i can let you know
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Go to a mortgage calculator, put in your loan balance as of today. Put in a term of 10 years or 120 months, at your current interest rate, leave off taxes and insurance. The amt for principal and interest plus your taxes is the amount you should pay.
Another way to look at it, how many years from now do you want to pay it off. Follow the steps above. I am not sure you currently have 10 years left on your mortgage from the way your question was stated.
References :
If your loan balance at end of year 3 is close to $147,000, paying an minimum of an extra $600 a month should get you very close to paying it off by your 120th payment. The balance remaining after 120th payment would be approx. $9480.
Microsoft has some free & very nice amortization Excel spreadsheets that allow you to factor in extra payments, whether it a fixed extra amount of payment of it varies.
http://office.microsoft.com/en-us/templates/results.aspx?qu=loan+amortization&av=TPL000
I frequently use the one at the top of that link.
References :
Oddly enough, the reason it doesn’t make much of a difference IS the short term. Those extra payments really add up if they have 30 yrs to compound. Over a shorter period, they make less of a difference.
The calculator is probably right.
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