Personal Finance

Loan Info!

I thought I’d share the boring details of our mortgage so you know what we are working with. Here’s the current original loan information:

Original Maturity Date 03/2036
Original Principal Balance $189,200.00
Interest Rate 4.25%
Amount scheduled to pay in interest $91,982.00 (yikes!!)

Now for the fun data! Each month, I hope to calculate how I am doing in my plan to repay the mortgage. Here’s where I am currently. The estimated interest is hard to figure out because my loan doesn’t have an easy way to calculate how much interest I am supposed pay. I’m sure they don’t want people to realize how much it is!

Current Maturity Date as of 3.16.2016 12/1/2035
Estimated Interest saved to-date $2,232.00
Current Principal Balance $187,620.00
Length of time reduced from original loan 3 months
Amount of principal paid to-date $1,580.o0

Hopefully I can stay motivated and achieve this goal!

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4 thoughts on “Loan Info!

  1. If your mortgage lender allows it, you should consider cutting your monthly mortgage payment in half and paying that amount every two weeks. Plugging your numbers above (along with your 20 year mortgage you mention in another post) into this calculator –> http://www.bankrate.com/calculators/mortgages/bi-weekly-home-mortgage-payment-calculator.aspx –> shows that doing this would pay your mortgage off 2.2 years early and save you roughly $11,000 in interest. You can play around with the calculator to see how much more you can save by paying a little extra each month, as well; for instance, paying an extra $100 per month cuts your mortgage down to 15.8 years and saves you $21,000 in interest. We don’t even have a mortgage but, when that day comes, I intend to play with this calculator A LOT! I hope you find this useful…especially if you haven’t already considered this. 🙂

    Liked by 1 person

    1. Thanks for the suggestions! I do love me some financial calculators. My lender does offer biweekly payments. However, they place the first payment into a non-interest bearing account. Then when they receive the second payment, they apply the entire sum to the loan. I was disappointed that the payment isn’t applied to the loan as soon as it’s received. I would end up making an extra payment so that’s somewhat helpful. But not as awesome! 😦

      Liked by 1 person

      1. Well that’s just the dumbest thing I’ve ever heard, as it completely defeats the purpose. What a shame. 😦

        IDEA! Tell them that if they won’t apply it biweekly like you want that you’re gonna shop around for another lender that will. Maybe they’ll work it out for you…if they call your bluff, then call theirs and seriously shop around. 🙂

        Liked by 1 person

  2. Loans and banks…it is a weird thing. Like Nurse on Fire says: be strict and bluff.
    The first time, they called my bluff…oops. I then shopped around, called them again and informed them on the other proposal I had. It took less than half of a day to get all paperwork ok from my first bank…

    Liked by 1 person

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