On a 200k loan, at 6% APR, 15yr Mortgage, how do I calculate the amount of $ actually paid ONLY to interest?

Question

On a 200k loan, at 6% APR, 15yr Mortgage, how do I calculate the amount of $ actually paid ONLY to interest at the END of 15 YRS.

Answer 1

You'll need an amortization table to figure that out. There is no quick and easy way to calculate that.

Google around; there are plenty on the net.

Microsoft Office includes an Excel template that you can use to build an amortization table. I used mine to figure yours. The total interest paid will be $103,788.46

Answer 2

In the early stages of a longer term loan, a larger portion of the payment goes to cover interest. Later, as your principal balance shrinks, a much larger portion of the payment goes towards the principal. Look at it this way - VERY rough numbers 1st year - owe $23,000, interest on that is $1587 - payments of $5544 pays that first, then $3957 off principal 2nd year - now only owe $19,043, interest on that is $1313, payments of $5544 cover that then $4231 off principal 3rd year, 4th year, etc. by the 5th year you owe a principal of $5456, interest on that is only $300+, so by then almost all of your monthly payments go to principal. Every little bit you pay above your required payment goes DIRECTLY to the principal, thus lowering the amount of interest you'll end up paying over the life of the loan. Paying a little extra is always a good idea and will cut time off the loan.

Answer 3

There are numerous amortization calculators for free on the web.