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mortgage calculator anyone?

Glowpun

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Hi,

Anyone know anything about that?

Let's say I have a 10 year mortgage. If I make an extra monthly payment per year, by how much time will the loan period be reduced?

gracie,
 
About one year early but that would also depend on the interest rate. I would suggest simply asking the lender.
 
Glowpun said:
Hi,

Anyone know anything about that?

Let's say I have a 10 year mortgage. If I make an extra monthly payment per year, by how much time will the loan period be reduced?

gracie,
Click to expand...

Depends on how much the loan is, what your interest rate is, etc.

I've been going full guns on my mortgage, trying to get a 30 year mortgage done in 10. Killing that debt!
 
Glowpun said:
Hi,

Anyone know anything about that?

Let's say I have a 10 year mortgage. If I make an extra monthly payment per year, by how much time will the loan period be reduced?

gracie,
Click to expand...

bankrate has a bunch of mortgage calculators I think. It wold depend on lot of things like are you talking 1 lump sum at the beginning of the year v. the end of the year v. a little extra every month. In addition some lenders will do that as an extra payment and not as all going toward principal. I know someone who paid about a year ahead worth of payments and the bank just advanced their next due date instead of applying it to principle only. They still saved money but when they refinanced their ARM, they still owed interest that was not calculated based on what they thought their payoff should be.
 
Glowpun said:
Hi,

Anyone know anything about that?

Let's say I have a 10 year mortgage. If I make an extra monthly payment per year, by how much time will the loan period be reduced?

gracie,
Click to expand...

Most online calculators are not going to account well for what you are asking because it all comes down to the mortgage terms. Interest rate is one factor, breakdown of normal monthly payments is another, type of 10 year mortgage important as well.
 
Glowpun said:
Hi,

Anyone know anything about that?

Let's say I have a 10 year mortgage. If I make an extra monthly payment per year, by how much time will the loan period be reduced?

gracie,
Click to expand...

I just ran a quick one at,
Mortgage Calculator - Bankrate.com
200,000 at 5% for 120 months.
An extra payment per year would only take off 12 to 13 months.
Most of the interest is front loaded, so it would help to put the bigger payments up front.
In the example above the 1st years principal was only about $700 a month of the $2100 payment,
So each extra $700 would knock a month off the end of the loan, for the first year.
the value of putting extra in goes down from there, still worth while.
 

The loan is with Wells Fargo Bank. They ask where you want the extra payment applied. Of course I say to the principal!
 
Glowpun said:
The loan is with Wells Fargo Bank. They ask where you want the extra payment applied. Of course I say to the principal!
Click to expand...

Not exactly precise, but if you do an amortization you can just deduct your principal backwards from the last payment (So if last payment is $250 principle/$1.25 interest, you have to pay $250 extra in principle before you eliminate that last payment).
 
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