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Playing with numbers

June 22nd, 2013 at 07:33 am

I like to try various scenarios in a mortgage calculator, just to see what happens. I know, I'm a nerd, but I don't think I'm the only one on this site.

Given current information about our tentative mortgage:

(1) If we pay exactly the mortgage payment every month, and no more, it would be payed off on August 1, 2043, and we would have paid a whopping $197,371.80 in interest over the life of the loan.

(2) If we could pay an extra $330 a month toward the principle (no pre-payment penalties allowed in our state), we would pay if off on August 1, 2033, and only pay $123,891.33 in interest.

(3) If we could pay an extra $555 a month toward the principle, we would pay it off on December 1, 2029, and would only pay $99,430.18 in interest. This option is nice because our very first payment would be essentially split between principle and interest, and we would never have a payment where we paid more in interest than in principle!

Now, realistically, finding an extra $555 to put to the mortgage every month may not be reasonable, but it's still nice to see what the numbers are in different situations. However, I do think an extra $330 a month might be possible. Most likely, though, I will try to pay at least a little extra every month for now, and then once DS (and possible future DKs) are out of childcare we will have more to send to principle.

I will make $330 a month my tentative goal, and re-evaluate once I see whether it will be possible.

Also, when someone on this site used to post their extra principle payments, then used to include a table that showed which future payments had been eliminated by their mortgage chips. Is there an easy way to do this? I always thought that chart was pretty cool!

7 Responses to “Playing with numbers”

  1. scfr Says:

    QUOTE: I know, I'm a nerd, but I don't think I'm the only one on this site.

    Nope, you are in very good company here!

  2. Petunia 100 Says:

    Glad you liked those posts, I'll be happy to email you my spreadsheet. Smile
    Saving Advice will e-mail you a copy of this reply, and you should be able to see my e-mail address. Just shoot me an e-mail, I will reply with my spreadsheet attached.

  3. Buendia Says:

    I am with you - I love playing with my mortgage calculator! (Nerds unite!!!)

  4. snafu Says:

    Brilliant to try out various scenarios on Mortgage calculator. Petunia's spreadsheet is a terrific motivator as you see the savings. You may not manage large direct to principal payments immediately but this is a long term project and you are focussed on this important cost avoidance goal so don't get frustrated. If you are a SAHM finding a way to add sporadic income is effective. Any part time work becomes much more valuable income when applied directly to mortgage principal.

  5. sarah Says:

    I've been playing with debt snowball calculators. They are fun. Nerds unite!

  6. PatientSaver Says:

    I don't know what year you're in with your mortgage, but those extra payments will have the most impact early on in the life of the loan. Make it a no-brainer habit now; you'll be glad you did.

  7. Shiela Says:

    You are definitely not the only one that does this. This is like a hobby for me. Smile

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