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My wife and I built a house and our mortage was 215k in Nov. 2011, we starting pay an extra 850 a month on our loan each month about a year ago.
Our current payoff date is Dec. 2041, and the payoff amount is 189k. I don't know how to set up a mortgage calculator to show me how much applying 10k extra next month would save as far as time and interest on our loan.
If I plug in our existing numbers of 189k and 322 months remaining the monthly payment doesn't match our base monthly payment of 1011.01 per month, so I'm not sure if I am figuring the amounts correct or not.
Can anyone please help me with this. Thanks so much.
I like to use Bankrate's mortgage calculaor. In order to be accurate, you would have to put in your info and also put in your principle payments. Then there is a spot where you can put in your one time 10,000 payment and see what it knocks off the end of your amortization schedule.
When you try to figure 189k at 3.875 for 322 months, it is giving you a lower payment because of the principal payments. When in reality, your principle payments just knock off months of payments at the end and do not lower you monthly payments.
I like to use Bankrate's mortgage calculaor. In order to be accurate, you would have to put in your info and also put in your principle payments. Then there is a spot where you can put in your one time 10,000 payment and see what it knocks off the end of your amortization schedule.
When you try to figure 189k at 3.875 for 322 months, it is giving you a lower payment because of the principal payments. When in reality, your principle payments just knock off months of payments at the end and do not lower you monthly payments.
So will the calculator be wrong since it's showing a smaller monthly payment than my minimum? Seems my mortgage company could tell me my savings on interest from a lump sum but they said they couldn't .
So will the calculator be wrong since it's showing a smaller monthly payment than my minimum? Seems my mortgage company could tell me my savings on interest from a lump sum but they said they couldn't .
It should show the correct amount as long as you use origional numbers and accurate dates. You can't just plug in the balance because that will change monthly payment. You would have to start from day 1 and reflect the principal payments accurately. You would put in starting loan amount, on the date it started, with mortgage rate, for 30 yrs and add extra payments accordingly. Then put lump sum amount in and see the amortization schedule.
Just a question- when you say monthly payment, you are talking about just the principle and interest, right? The amount most people send includes their taxes and insurance all in one payment, but the mortgage itself is just the principle and interest.
Last edited by lauradrops; 01-16-2015 at 05:25 AM..
Reason: wanred to add something
Ok, I was able to go back and track all my payments and used a calculator. An extra 10k payment next month would reduce the term of my mortgage by 8 months, and save me $4711 in interest, but this doesn't figure in the mortgage deduction lost which I guess is going to be 4711 x .28 ( my federal tax bracket), so I would actually save $3392 if I figured the tax deduction correctly.
Ok, I was able to go back and track all my payments and used a calculator. An extra 10k payment next month would reduce the term of my mortgage by 8 months, and save me $4711 in interest, but this doesn't figure in the mortgage deduction lost which I guess is going to be 4711 x .28 ( my federal tax bracket), so I would actually save $3392 if I figured the tax deduction correctly.
You didn't. You don't pay 28% in taxes just because you are in the 28% bracket. Your effective or average tax is going to be less than that. I don't even itemize, and while my bracket is 15%, my effective tax was only 8% last year.
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