Anyone able to provide some early mortgage repayment math help?

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josie1676
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Joined: Fri Oct 08, 2021 10:39 am

Anyone able to provide some early mortgage repayment math help?

Post by josie1676 »

Hi, and thanks for reading!

In a nutshell, I've been making additional payments on my mortgage since it's origination,and I'm not sure how to calculate at the current rate of repayment (with the assumption my taxes don't significantly change) 1. when the loan will be paid off, and 2. how much more I will be paying in interest. I'm hoping someone here could shed some light on those two things for me. Here's the details of the mortgage:

Originated: 6/2010
Maturity Date: 7/2040
Interest Rate: 5% (I haven't been able to refinance due to the low principal)
Original Amount: $89,519
Current Principal Balance: $35,766
Current Payment Applied to Principal as of this Month: $329.77
***Once my new tax appraisal is applied, my additional principal reduction from paying extra will be roughly $45 a month at the current rate.

I'd really appreciate the help.
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Quirkz
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Re: Anyone able to provide some early mortgage repayment math help?

Post by Quirkz »

Rough guess: "Under the proposed payment terms it will take 145 more payments or 12.1 years to pay off the remaining balance. Interest will amount to $11,911."

I googled for "loan payoff calculator" and ended up here: https://www.calcxml.com/calculators/pay-off-loan

I plugged in your numbers ($330/mo; I didn't try it again with the $45 that you mentioned) and got that result.
nolesrule
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Re: Anyone able to provide some early mortgage repayment math help?

Post by nolesrule »

Edit: My numbers were wrong because I misread the current principal payment amount as the payment amount.
Last edited by nolesrule on Mon Oct 11, 2021 2:12 pm, edited 1 time in total.
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GMCZ71
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Re: Anyone able to provide some early mortgage repayment math help?

Post by GMCZ71 »

josie1676 wrote: Fri Oct 08, 2021 11:02 am
Originated: 6/2010
Maturity Date: 7/2040
Interest Rate: 5% (I haven't been able to refinance due to the low principal)
Original Amount: $89,519
Current Principal Balance: $35,766

I'd really appreciate the help.
Just a thought about the 5%, we did a heloc at credit union for 3.25% when our balance was under the amount banks threshold would refi. You might find something in the 2's online.
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JVT
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Re: Anyone able to provide some early mortgage repayment math help?

Post by JVT »

I use a spreadsheet based on this Google Sheet. Make a copy and update it with your loan information. It makes it relatively easy to see how one time payments or changing your monthly will impact your total interest and payoff date. If you know how much extra you have been paying you can just input those numbers, if not then you can approximate with payments that drop your current principal payment to correct for the current month.
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Abe
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Re: Anyone able to provide some early mortgage repayment math help?

Post by Abe »

OP. How much is your principal and interest payment (not including taxes & insurance)?
Slow and steady wins the race.
Tom_T
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Re: Anyone able to provide some early mortgage repayment math help?

Post by Tom_T »

Abe wrote: Sat Oct 09, 2021 10:46 am OP. How much is your principal and interest payment (not including taxes & insurance)?
If her loan amount is $89,519 for 30 years at 5%, then $481.
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Abe
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Re: Anyone able to provide some early mortgage repayment math help?

Post by Abe »

When I run an amortization schedule for the original loan amount of $89,519 using 5% interest, for 30 years, it shows the principal & interest payment amount to be $480.56 per month. If the loan balance now is $35,766, then it would take a little over 89 payments to pay out, assuming the OP does not make anymore additional principal payments and the total interest on that amount would be $7,137. If the OP makes any additional principal payments after this point, these numbers would have to be recalculated to get the number of payments remaining and the dollar amount of the interest remaining.

ETA If you are going to be making additional principal payments, all you have to do is determine the new loan balance after making the additional principal payment and run a new amortization using the new principal (loan) balance to get the number of payments remaining and the interest remaining.
Slow and steady wins the race.
Duzz78
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Re: Anyone able to provide some early mortgage repayment math help?

Post by Duzz78 »

Abe wrote: Sat Oct 09, 2021 11:37 am When I run an amortization schedule for the original loan amount of $89,519 using 5% interest, for 30 years, it shows the principal & interest payment amount to be $480.56 per month. If the loan balance now is $35,766, then it would take a little over 89 payments to pay out, assuming the OP does not make anymore additional principal payments and the total interest on that amount would be $7,137. If the OP makes any additional principal payments after this point, these numbers would have to be recalculated to get the number of payments remaining and the dollar amount of the interest remaining.

ETA If you are going to be making additional principal payments, all you have to do is determine the new loan balance after making the additional principal payment and run a new amortization using the new principal (loan) balance to get the number of payments remaining and the interest remaining.
I also ran your original amortization schedule and come to a similar conclusion as Abe.
I calculated you will have 90 payments (7 1/2 years) to pay out. With the amount you say has been applied toward principal this month and your stated remaining principle balance, I show you are between payment 270 and 271 on your amortization schedule. This schedule did calculate total remaining interest due as $9166.75. Not sure why Abe and I disagree here.

The amortization schedule that you received at closing should support these facts.

The fact that you have paid 22 1/2 years of principle in 11 years is to be commended.

If you continue to make additional principle payments, then you could pay off this your mortgage sooner. Without knowing your additional payments, I cannot calculate how much more interest you would save and the number of months remaining.

Please note you have gotten to the point where your principle payment is now regularly in the $33X range and will continue to increase monthly around $1.43 - 1.94 more each month. This is important. You must pay the lender the scheduled principle amount and interest due for each payment so that you are not charged a late fee on any give month. So you will either need to increase your additional principle amount going forward or just follow your amortization schedule.

josie1676 wrote: Fri Oct 08, 2021 11:02 am
***Once my new tax appraisal is applied, my additional principal reduction from paying extra will be roughly $45 a month at the current rate.
I just don't know what you mean by this? I am assuming your qualified for some new exemptions on your property taxes that would lower your property tax bill. Yes, that will lower to total monthly PITI payment. It will not affect the principle and interest due for each future payment.
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Abe
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Re: Anyone able to provide some early mortgage repayment math help?

Post by Abe »

Duzz78 wrote: Mon Oct 11, 2021 12:22 pm
Abe wrote: Sat Oct 09, 2021 11:37 am When I run an amortization schedule for the original loan amount of $89,519 using 5% interest, for 30 years, it shows the principal & interest payment amount to be $480.56 per month. If the loan balance now is $35,766, then it would take a little over 89 payments to pay out, assuming the OP does not make anymore additional principal payments and the total interest on that amount would be $7,137. If the OP makes any additional principal payments after this point, these numbers would have to be recalculated to get the number of payments remaining and the dollar amount of the interest remaining.

ETA If you are going to be making additional principal payments, all you have to do is determine the new loan balance after making the additional principal payment and run a new amortization using the new principal (loan) balance to get the number of payments remaining and the interest remaining.
I also ran your original amortization schedule and come to a similar conclusion as Abe.
I calculated you will have 90 payments (7 1/2 years) to pay out. With the amount you say has been applied toward principal this month and your stated remaining principle balance, I show you are between payment 270 and 271 on your amortization schedule. This schedule did calculate total remaining interest due as $9166.75. Not sure why Abe and I disagree here.
If additional principal payments have been made, you can't use the original amortization schedule anymore. I ran a new amortization schedule showing a principal balance (loan balance) of $35,766, payment amt $480.56, 5% interest and it calculated that there are 89 payments remaining plus one partial payment, and the interest over that period would be $7,137, assuming there are no more additional principal payments made. If there are additional principal payments after that point, you would have to run a new amortization schedule to get the number of payments remaining and the dollar amount of interest remaining.
Slow and steady wins the race.
fyre4ce
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Re: Anyone able to provide some early mortgage repayment math help?

Post by fyre4ce »

Roughly 90 months, or 7.5 years.

I took your principal payment per month ($329.77) and added that to the monthly interest ($35,776 x 5% / 12 = $149.07) and got a monthly P&I payment of $478.84. Then, I made a simple amortization table in Excel, adding the interest and subtracting the payment every month. It took 90 months for the balance to drop below 0.

Edit: total interest paid will be about ($478.84 x 90 - $35,776 = ) $7,319.60.
Duzz78
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Re: Anyone able to provide some early mortgage repayment math help?

Post by Duzz78 »

Definately my error on the interest.
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