| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 785.1 | correct | SLOAN::HOM | | Thu Nov 10 1994 14:29 | 30 |
| There are some "gotcha's".
1. With 22 years to go, the majority of your monthly payment is still
interest. As you move closer to paying off the mortgage,
principal becomes a bigger chunk.
Example: $100K Principal 8%, 30 years:
Month Payment Principal Interest
1 $733.76 $67.10 $666.67
180 733.76 220.42 513.35
300 733.76 489.25 244.52
350 733.76 682.05 51.05
As you can see, at month 180, your payments are about 75% higher.
In the last year, your payments are almost 100% higher.
This may not be as difficult as it appears. Hopefullly, 10-15 years
your income may double.
2. Make sure that any extra payments are indeed used to pay the
principal. There are a number of cases where the banks, etc have
credited the extra payments to property tax, insurance, rather
than the intended purpose.
If you start with 22 years remaining, and follow the above, you
will pay off the mortgage in 11 years.
Gim
|
| 785.2 | AMORTIZATION PROGRAM OR BOOK | NWTIMA::BOUCHARD_MI | | Fri Nov 11 1994 01:33 | 5 |
| RE NOTE 785
IF YOU REALLY WANT TO TRACK IT YOU SHOULD LOOK IN TO GETTING AN
AMORTIZATION PROGRAM FOR A PC OR GO TO A BOOKSTORE AND BUY A
AMORTIZATION BOOK AND YOU CAN SEE EXACTLY WHATS GOING ON.
MIKE
|
| 785.3 | thanks! | WMOIS::SPENCER_DEB | | Fri Nov 11 1994 08:09 | 11 |
| re. .1, .2
Thanx for the info - you verified what I thought was true. And, yes,
my principal payments do go up over time, but like .1 said, hopefully,
so will my income.
.2 yes, I do have an amortization spreadsheet I'm going by.
Thanx again,
Deb
|
| 785.4 | You're hurting our eyes | 12368::michaud | Jeff Michaud, UC1 | Fri Nov 11 1994 11:23 | 3 |
| Re: .2
Hey Mike, why are you SHOUTING?
|
| 785.5 | I WAS WHISPERING | NWTIMA::BOUCHARD_MI | | Fri Nov 11 1994 21:07 | 4 |
| I DIDN'T KNOW I WAS SHOUTING...I WAS TOLD THAT BEFORE BY SOMEONE ELSE
SORRY IF IT SOUND THAT WAY.I WAS TOLD BY SOMEONE THAT IT SEEMS THAT WAY
WHEN YOU USA ALL CAPS.SORRY IF YOU FELT AFFENDED.
mike
|
| 785.6 | Another approach | POBOX::CORSON | Higher, and a bit more to the right | Mon Nov 14 1994 17:24 | 9 |
|
May want to take another tack.
Look at taking the difference in mortgage payments and applying
those additional funds to a good mutual fund, or bond fund for that
matter. Over time you may find yourself paid off with $$$ to spare.
the Greyhawk
|
| 785.7 | | WRKSYS::WEISS | | Wed Nov 23 1994 12:25 | 17 |
| I'm sorta doing this, but not following the prescription exactly. For
instance, this month's principal payment and next month's will be
almost the same, so if you don't have an amortization table or don't
want to bother, just double the principal for the current month as
shown on your bank statement and send that in. Also, I'm not
calculating this out to the penny either. I have just been rounding
out to the nearest $25 or $50, and sending that in. Some months I'll
send a little extra principal, and sometimes a little less (than
double).
Note also that you're really sending in (P1 + P2) on your first
payment, (P3 + P4) on your second, (P5 + P6) on your third, etc, from
the ORIGINAL 30 yr amortization table. If you're not sending in
an extra amount equal to roughly the principal the bank is applying
from your last/current payment, you're not doing it right.
...Ken
|