City-Data Forum How much to reduce mortgage? (loan, interest rate, loan, payments)
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09-07-2008, 07:48 AM
 1,315 posts, read 3,062,191 times Reputation: 934

What is the general formula for a mortgage. Example, I have a 950.00 note on a 120k house. How much less would I pay for the same motgae on a 80 k house? Is it something like every 20k less would lower the mortgage by 100 dollars?/month? So would the 80k house be 750?Thanks.

09-07-2008, 10:09 AM
 Location: Richardson, TX 10,188 posts, read 16,757,832 times Reputation: 24830
Try googling "mortgage amortization calculators."

You can put in all the different loan amounts you like and compare their monthly payments.

09-07-2008, 08:16 PM
 Location: Apple Valley Calif 7,475 posts, read 19,596,619 times Reputation: 5583
This is my favorite..
AMORTIZATION TABLE

09-08-2008, 05:06 AM
 1,315 posts, read 3,062,191 times Reputation: 934
Donn, this worked great, thanks!

09-08-2008, 03:19 PM
 983 posts, read 3,488,097 times Reputation: 357
Principal + Interest Payment only depends on 3 factors: interest rate, number of payments, loan balance. If you have MS Excel, use the following function

=-pmt(APR/12, number of months, loan amount)

For example, payment for 30-yr 6% loan of \$100,000 will be

=-pmt(0.06/12, 30*12, 100000) = \$599.55
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