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 se_roma
Joined: 09 Aug 2008
Posts: 1
1.32 Dollars($)
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laphillips
Community Expert
Joined: 10 May 2008
Posts: 134
Location: Yucaipa, CA
33.92 Dollars($)
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Posted: Sat Aug 09, 2008 11:29 am Post subject: Hi! WE are mortageing $350 k fo ra new home, but several
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Hello se_roma,
Wow, $110K to apply to your principle! You are correct in that it will shorten the life of your loan. It will also decrease the amount of interest you will pay for the life of your loan, i.e the loan will cost you less.
Example (based on fixed rate):
Loan amount $350,000.00
Annual interest rate 7.000%
Loan period in years 30
Start date of loan 1/1/2008
Monthly payment $2,328.56
Number of payments 360
Total interest $488,281.14
Total cost of loan $838,281.14
Loan amount $350,000.00
Annual interest rate 7.000%
Loan period in years 26
Start date of loan 1/1/2008
Monthly payment $2,438.93
Number of payments 312
Total interest $410,946.62
Total cost of loan $760,946.62
(these are approx figures)
Unfortunately, unless the loan is rewritten/refinanced the payments aren't likely to change change. 
Example:
Loan amount $240,000.00
Annual interest rate 7.000%
Loan period in years 30
Start date of loan 1/1/2008
Monthly payment $1,596.73
Number of payments 360
Total interest $334,821.36
Total cost of loan $574,821.36
Notice the difference in the savings?
_________________
Lynnette Phillips
Loan Officer/Realtor,
Foreclosure Consultant
Home Pride Mortgage
My Blog: http://activerain.com/helpingufindaway
My website: http://lynnettephillips.com
**This is not intended as legal advice. I am not an attorney.** |
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ckalvesmaki
Community Expert
Joined: 28 Jan 2006
Posts: 378
Location: Dallas
56.51 Dollars($)
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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