how do you pay off a mortgage in ten years by paying next months principal plus some extra?

Question

121,000 mortgage starting July 1 for 30 years

Answer 1

www.bankrate.com has some nice calculators. Just plug in the principal amount, the interest rate and the years you want to have it paid off and it will give you a monthly figure.

**Edit:

I plugged in some numbers, at a 6% interest rate, you'll be paid off in 10 years at $1343.35 a month... good luck!

Answer 2

You owe interest to the bank on top of the principle, 121k.

You can calculate the interest only portion of your payment easily on a calculator. For example, if you have a 6% interest rate you would take 121k times 6% = $7,260. Divide this by 12 mos/yr = $605. This is the "profit" the bank is making on loaning you 121k.

So you owe $605/mo to the bank. If you wanted the balance of your loan to be paid off in 10 years you would need to take 121k/120 mos (10 yrs) = $1,008.33. You would need to pay this principle contribution monthly plus the interest totaling $1,613.33 to pay off your loan.

Recheck with any calculators you find on the internet and of course, this does not factor in taxes and insurance.

I am so proud of you for trying to payoff your loan early. Very smart! If you payoff your loan in only 10 years you save 20 years of interest payments, $605 x 240mos (20 years) is $145,200. That's A LOT of savings!

It's a great practice to pay a few hundred dollars extra each month!

Good luck!

Answer 3

VERY IMPORTANT: when sending an extra payment, make sure that you mark on the check that it is being applied to the PRINCIPAL, otherwise it will go directly to the interest, and will not affect the principal balance, thus not reducing your mortgage balance. paying extra every month to the principal will reduce the mortgage balance, which will in turn make the accrued interest lower....which will allow you to pay this loan off faster, saving you thousands!!!

Answer 4

You can also pay off faster by paying bi-monthly (every two weeks).


My brother had a 30 yr mortgage and will have it paid off in 10 yrs. What he did was they still lived under the same budget they had when they bought the house. So every cent from his pay bonuses, raises, tax refunds, etc (same with wife's) goes on to the mortgage payment.

Answer 5

so besides the above answers in essence the more you pay now toward the principal the less interest they can charge toward the unpaid principal thus you save tons of money on your loan. Think of it like this. Buy a house for $100,000 but over 30 years you pay $300,000. $200,000 in interest is what you pay incredible as that may seem. If you pay more and more toward the principal you could pay as much as $50,000 or more LESS in interest. Not bad huh?

Answer 6

Bingo---pay your mortgage every two weeks and you will take off 11 years.

Answer 7

take the amount owed and divide by 120 mos.
this gives you the base payment,by paying more on the principle,you avoid having to pay interest

Answer 8

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http://answers.yahoo.com/question/index;_ylt=AgUJ9Hd08.CE9cYi0a6OoIrsy6IX?qid=20060616111907AAcwglm

Answer 9

Buy following a schedule your Mortage Company gives you. Request a schedule.

Answer 10

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