Till here, it’s the basic mortgage repayment math. Total months remaining how many months you’d have to make the payment to pay off the mortgage: 360 (i.e. Now add the date when you want to start making prepayments and the date you want your mortgage to end, then click 'calculate'. Monthly payment how much you’re supposed to pay every month: 1909.56. To see the amount of prepayment you'll need, please enter your loan amount, loan term, interest rate and date you made the first payment on your mortgage. The point of the line of credit is to maintain liquidity while making extra payments, not to get into more debt. Pay off your mortgage on your desired date. Note: This spreadsheet has nothing to do with debt consolidation. Once you enter all of your information, you will see a table that will tell you what your new monthly payment will be if you wish to change your loan term. In this scenario, a person makes a principal-only payment on the mortgage using the line of credit, then uses their free cash flow to pay off the line of credit balance, then repeats this process until the mortgage is paid off. Our mortgage payoff calculator will help you know how much more money you will need to add to your monthly payment in order to get your home paid off early. Scenario 3: Using a Line of Credit with optional Paycheck Parking To see the amount of prepayment youll need, please enter your loan amount, loan term, interest rate and date you made the first payment on your mortgage. Let’s say you have a 220,000, 30-year mortgage with a 4 interest rate. Extra Payment: Extra payment you want to pay every month. Say, your home loan APR is 6, then the interest rate for a month will be 6/12 0.5. Annual Interest Rate (APR): Annual Interest Rate you will pay for your loan. This scenario does not use a line of credit. For mortgage loan, it is normally 15-30 years. In this scenario, a person uses their free cash flow (income minus expenses) to make monthly extra principal payments on the mortgage. Scenario 2: Using Free Cash Flow to Make Extra Payments It represents a person making only the normal monthly payment each month. It compares 3 scenarios: Scenario 1: Traditional Mortgage Amortization with No Extra Payments This spreadsheet simulates the technique of using a Line of Credit to help accelerate the payoff of a mortgage, with optional paycheck parking.
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