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?
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?
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.