City-Data Forum Help calculating my future with my mortgage please. (insurance, loan, payment schedule)
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07-12-2011, 07:09 PM
 17 posts, read 69,798 times Reputation: 13

I decided to do a little changing of my mortgage payment schedule today. After I was off the phone with the mortgage company, I started playing with some calculations and things didn't seem right. I will assume that I am not figuring things right... so I am coming here for some help with it. I will try my best to make sense with what I am really wanting to know.

Original loan amount was ~\$110,000 in Sept 2005, on a 30 year mortgage @ 5.625%. Monthly payment is \$632.65 per month (no escrow as I pay taxes and insurance seperately).

Not from day 1, but shortly after the beginning, I enrolled in the equity accelerator program. I decided to let them pull \$350 from my account every two weeks at the same time I get paid. This calculates to \$758.33 per month, and supposedly gives me a payoff date of Sept 2026 (per the equity accelerator person I talked to today).

I decided to up the withdrawal amount to \$400 every two weeks, which calculates to \$866.66 per month. After this change, I asked when the payoff would be, and was told December 2023.

Here is where I need help, either with my math, or with understanding what is going on.

As of today, I should have 180 more payments (at \$758.33), and according to them, I would have 150 more payments (at \$866.66)

\$866.66 x 150 = \$129,999
\$758.33 x 180 = \$136,499

I was thinking that an additional 108.33 (on top of the already additional over the actual mortgage amount) would have made more of a difference than 30 months earlier, and ~\$6500 end total savings.

FWIW: my current principal balance is \$91,654

Does my math seem right?

Am I being told accurate information from the equity accelerator people?

Is there a better way to go about what I am doing?

Underlying goal: I retire in 9.5 years, and I want to have no mortgage note on or around then.

Thanks

07-12-2011, 08:14 PM
 577 posts, read 930,974 times Reputation: 629
They aren't charging you for the program are they?

07-13-2011, 11:35 AM
 Location: Kansas City North 4,953 posts, read 8,384,255 times Reputation: 8502
Quote:
 Originally Posted by msdmoney They aren't charging you for the program are they?
Agreed - if you have to pay ANYTHING for so-called loan acceleration programs, just do your OWN program. If you have excel, Microsoft.com has a great amortization program template where you can include your extra principal payments.

Search results for "loan amortization" - Templates - Office.com|

07-13-2011, 01:45 PM
 Location: New York 2,251 posts, read 4,512,519 times Reputation: 1611
This is a very good program to follow, in addition to reducing the term, reducing your "Net Effective" interest, you are also being reported to the Credit Bureaus as being more responsible. You credit is reported higher.

Better much on any loan - one extra payment a year reduces term such as a 490yr to a 30yr, a 30yr to 23.5yr, a 20yr to a 16.6 yr, a 15yr to a 12.5yr...... These figures are based on a band new loan

You been in your loan almost six years - sending in more now, you are not going to get the same figures becuase the extras amount will be amortized over a shorter period..

A very strong suggestion - contact your lender for a stream line refinance into a 20yr mortgage, interest rates are around 4.5% = a P/I payment 586.00

Even a 15yr = 3.75% rate = P/I payment \$673.

Continue sending in \$866.00 per month = payoff in 130 months / 12 = 10.8 years....

130.28 months x \$866 = \$112,819.00.... (Much better then above).....
..

Last edited by Modification Specialist; 07-13-2011 at 01:56 PM..

07-14-2011, 02:26 AM
 Location: Anchorage 815 posts, read 1,576,259 times Reputation: 846
Quote:
 Originally Posted by Okey Dokie
I could not downoad that one, for some reason (or felt too impatient to figure out), but found another one that is instantly available on-line and seems to be pretty good (or with several options for extra payments, anyway)
Amortization Schedule Calculator -- Bankrate.com
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