What is the equation for paying off a 30year loan in 10 or 15 years?

Answer 1

There is no formula like that since it all depends on your interest rate, but what you can do is go to any financial website and find a loan payment calculator. Plug in your mortgage data, but put 180 months for the term of the loan.
The calculator will give you Payment Amount or P&I amount (principal and interest). Not how much that payment is greater than Principal and Interest amount on your loan and simply send that much more every month.

Example:
You have a 200,000 loan at 7%, with payment 1330.60 per month.
Using financial calculator or Excell spreadsheet or some financial website you found that to pay the loan in 180 months you have to pay 1,797.66 per month, so you send 467 per month extra and pay off your loan in 15 years.
Do the same for a 10 year loan and you will find needed values.
If you don't want to do any of that, and instead want to use a rule of thumb, then adding $2.50 per thousand a month will pay off your loan in about 15 years, if you double payment amount on your 30 year loan you will pay off your loan in about 8 years. But this is very inexact, since depending on interest rate the numbers will change slightly.

Just in case you chose to use Excell for calculations, go to "Insert", "Function" and pick function name "PMT", see help for usage. It's very simple.

Answer 2

Not sure what you mean..do you mean how to pay it off faster? If so..go to the bank rate website and enter the numbers for the mortgage (years , dollar amounts etc) then print out an amortization schedule for the entire life of the mortgage. This shows the amount that goes to principal and the amount that goes to interest each month. Then you will notice that the amount for interest is really big campared to the amount you are paying toward principal. Then stay in the principal column and pay two or three principal amounts each month as long as you can affford it. The amount on interest that is next to the principal is NEVER paid by you..that is waht you are saving in interest. Hope this helps you. Get the longest number of years on the mortgage then pay it this way...be sure never to accept any mortgage with a prepay penalty. Never, Never , Never.

Answer 3

If you were to pay it off in 10 or 15 years then you should just finance on those terms because the interest payments will be lower however the payment will be higher because of a shorter time period. I am unsure how to calculate it manually but they have calcultors on http://realestate.yahoo.com/calculators/amortization.html;_ylt=AiYC3TpdBSCttkMKhfJR3PX9j8kF that give you the figures.

Answer 4

Here's a great calculator:
http://www.hsh.com/calc-amort.html

You can input your loan terms and play with how much extra you could pay, and it will tell you how long it will take to pay off the loan.