We just paid a lump sum to our mortgage to reduce principal. Can some one give me a formula to find savings?

Deal Score0

I want to find out the monthly interest saved and how many years we have taken off the loan, especially if we continue to reduce principal.

4 Comments
  1. Reply
    sar
    February 12, 2011 at 10:06 pm

    if you make every year 1 extra payment you are reducing 7 years of your loan

  2. Reply
    Dan B
    February 12, 2011 at 10:25 pm

    Go to the site below and download an Excel spreadsheet for the “Home Mortgage Calculator”. It will allow you to figure EVERYTHING out, really! It will allow you to put in a monthly added principal and/or a lumpsum payment (as in your case). It will show you what you owe, how much you’ve paid, how long it will take you to pay your mortgage. It shows your amortization schedule, also.

    I’ve been using it for a couple of years. It’s the best program I’ve found.

  3. Reply
    Doctor Deth
    February 12, 2011 at 11:08 pm

    there is no single easy formula – you basically knocked a couple of mortgage payments off teh ned of the mortgage and gong forward, the amount of your monthly payment that goes towrds principle with increase a little faster

    without knowing how big a lump sum – hard to answer any further

    most mortgage alulators online assume an extra amount being paid every month – some might have a lump sum calculation included

    google mortgage calculators

  4. Reply
    Jennifer
    February 13, 2011 at 12:03 am

    Hi,

    I used “Quicken Loans” to refinance my home.Their rates for refinance and mortgage are very low even though my credit score is very bad.Check it out here:

    http://QuickenLoans2010.notlong.com

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