Help with mortgage calculator

[johngross]

There are some good mortgage calculators on the internet, but I can't find one that does what my wife and I will be doing shortly. We are going to refinance, and put more money toward the principle every month. Yes, there are calculators that will allow you to add extra principle each month and it shows you how sooner the loan will be paid off. However...

The calculators I've found only allow you to enter one dollar amount as the extra principle and keep that same dollar amount throughout the length of the loan. What my wife and I will be doing is putting a smaller amount for say the first 18 months of the loan toward the principle, and then at month 19 increase the dollar amount.

If anyone knows of such a calculator on the internet, or even an old fashioned mathematical formula requiring a pencil and paper, I would appreciate you sharing it with me.

Thank you.

 

[Golddollar]

Print out the amortization table (maybe several times) which will show how much of each payment goes to principal and how much goes for interest. With each payment it should show how much principle is left. If you are paying a little extra each month you can subtract that extra from the remaining principal. If you make a big principal payment you can cross out the number of payments that the extra principal covers. Early on the term of the mortgage a significant extra principal payment ($500-$1000 or so) can extinguish quite a few payments.

 

[THE PILGRIM]

Enter the data and compute an amortization table using your initial payment.
Then go down to the Remaining balance at the point you want to increase your payment.
Then recompute amortization using the remaining balance and your new higher payment.
Total Payoff months will be first lower payment months plus months computed with higher payment.

 

[Ole Joe Clark]

I just made up an Excel spread sheet for ours. You could enter whatever the amount paid and it would recalculate the balance due.

I still have it somewhere.

Have a blessed day,

Leon

 

[llowry61]

One tip, watch the bank when you make additional principle payments. Some banks will do a "pay ahead" application of your payment unless you clearly convey that the additional funds are to be applied to principle only. BTW when they do that they of course apply the normal interest. I ended up having to go to a branch and speak to the manager to have it rectified. They tried to tell me it was their policy to apply overpayments in that manner, since they did not know specifically how I wanted it applied. That is BS. I sent a 10k off cycle payment after having made the normal payment and they didn't know how to apply it. Right -

L

 

[fiasconva]

What llowry61 said. Make sure you specify in writing exactly how much you want applied to the principal. Some banks will automatically apply it to the interest unless you do that.

 

[Golddollar]

What llowry61 said. Make sure you specify in writing exactly how much you want applied to the principal. Some banks will automatically apply it to the interest unless you do that.

I used to write any additional principal payment on a separate check and indicate in the memo line that it was a principal payment.

 

[Ole Joe Clark]

I asked the credit union about that during the loan application and never had a problem with it.

Have a blessed day,

Leon

 

[llowry61]

I did what Gold Dollar said and they still applied it wrong. They told me that the memo lines were not read since high speed scanning equipment was used. The loan agreement did have a Satisfaction and Accord clause stating that items written on the memo line of a check were not binding, specifically calling out paid in full. Now, in later years the statement included a box to check on how to apply over payments. Ironically, it was after the loan was sold by Chase to another servicer. After that issue, I went to a Chase branch and made the extra payments directing them how to apply the payment. After, the loan was sold as mentioned above, I was able to make a single payment monthly and direct the overpayment to principle.

 

[LVSteve]

One tip, watch the bank when you make additional principle payments. Some banks will do a "pay ahead" application of your payment unless you clearly convey that the additional funds are to be applied to principle only. BTW when they do that they of course apply the normal interest. I ended up having to go to a branch and speak to the manager to have it rectified. They tried to tell me it was their policy to apply overpayments in that manner, since they did not know specifically how I wanted it applied. That is BS. I sent a 10k off cycle payment after having made the normal payment and they didn't know how to apply it. Right -

L

Why would they automatically do it the way that benefits the customer? They wouldn't make as much money over the life of the loan.