Does an amortization table auto adjust over time to reflect extra payments to the principle?

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I have a 30 year loan at 7% on $ 60,000. The mortgage payment is only
$ 537 with ($ 150)escrow. I pay it each month AND an additional $ 300
towards the principle. Roughly, this will reduce my total term to
have this thing paid for and done in about 11 years based on my

My question is this. I have studied and can easily produce an 30 year
amortization schedule telling me that in 11 years, in 2021 I will
still be paying $ 290 worth of interest PER MONTH. This is based on 30
years, 7% and 60,000.

I am considering refinancing and am aware that 7% is too high,
although it is an investment property.

My question:

Does an amortization table auto adjust over time to reflect extra
payments to the principle? At the rate I’m going, will I still be
paying $ 290 on interest in year #11 of the payment, even though my
balance will be very low in 11 years, (with the extra payments I make)

OR is the only way to reduce the amortization or redo it, is to
refinance and shrink the term to a 10 or 15 year loan?

  1. Reply
    April 30, 2011 at 1:25 am

    Your question is a little confusing. If you are paying 300 extra per month every month you are paying approximately 6 extra payments a year. To see the effect that these six payments would have on the schedule of principal and interest paid you would need to do a new ammoritization schedule after each payment. This seems time consuming but their are programs online that can do this for you. I can tell you though that 1 extra principal payment a year will reduce a 30 year mortge to 23 years to pay off. Each additional payment increases the amount of years cut off of the end of the mortgage exponentially.

  2. Reply
    Jin H
    April 30, 2011 at 2:12 am

    First of all, you should absolutely refinance. Your 7% interest rate is way too high even for an investment property. Of course I don’t know the loan to value, your income, credit scores etc which affect your rate but assuming that it’s all average or above average, it should be in the 5’s or 6% range at the most.

    As for your confusing scenario about the amortization table 🙂
    check out Their mortgage calculator will show you every possible breakdown for milliion scenarios that you want to know about. I use that site to answer my client’s similar questions that you’re currently asking.

    good luck!

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