Adding Extra To Your Monthly Parment? Is So Where Can I Get It?
Q: Is there software that shows how much you save on your mortgage by adding extra to your monthly parment? Is so where can I get it?
A: If you have a spreadsheet available, you can figure it out yourself. You know the principal and interest payment, the interest rate, the initial principal, and the term of the loan. Suppose that the interest rate is 6% annually; your monthly rate is 6%/12, or 0.5%. Multiply the initial principal amount by 0.5% to get the first interest payment. Next, subtract this interest payment from the P&I payment to get your first principal payment. Next calculate the new total principal owed by subtracting the first principal payment from the initial, total prinipal owed. Repeat the process until the loan expires. Example: principal = $100,000, APR = 6.0%, term = 30 yrs (360 mo.) 1. monthly P&I = 599.55, Int.#1 = $500, Prin.#1 = $99.55 2. principal = $99,900.45, Int.#2 = $499.50, Prin#2 = $100.05 3. principal = $99,800.40, Int.#2 = $499.00, Prin#2 = $100.55 and so on, up to 360 payments.