is there a calculator to figure out my mortgage balance if I increase the payments?
June 3, 2010 by
Filed under mortgage calculator
I am near the latter part of my mortgage……I want to increase the payments from the minimum of 980 to 1300 per month..How soon will it be paid off. There is a balance remaining of 25,000 and the interest rate is 7.5%
I know there are tables to express your exact amounts and time frame – but if you don’t do the “mortgage acceleration” process correctly, it will backfire on you. Here’s what will happen if you send a check to your mortgage company for 1300 (instead of 980) the excess will be applied to NEXT months INTEREST payment, and not to the Principal – The correct way to accelerate your mortgage so that it gets paid off quicker, and you get more equity into your home – Draw two checks – one for the reg. 980 and the other for the 320.00 – on the smaller check you write in the Memo line – TO BE APPLIED TO PRINCIPAL ONLY! – so that the bank has reduce the amount you owe. Do not worry, the bank will do the right thing, as they have been sued for not handling the funds (FEDERAL BANKING LAWS) correctly. Good Luck! — I did this myself and took
3 years off my payments.