Mortgage Payments (bi-weekly)?

Question

Need some help with the following calculations here...

Principal = $180k
Interest = 5.875%

This is the scheduled payment for first 2.5 years

Jan to May 08 = $1,000 per payment
June 08 to May 08 = $2,250 per payment
June 09 to May 10 = $3,250 per payment

How much principal is left at this point? and how long will it take if I pay $3,750 per payment!

Happy Holidays!

Answer 1

use Excel to set up a spreadsheet on this. column headings:

date
prior balance [starts at 180k]
interest due [14 days on prior balance]
amount paid
paid to principal [amount pd minus interest due]
ending balance [prior balance minus pd to principal]

this'll handle your questions

Answer 2

This is easy to solve with a spreadsheet. With monthly payments, at the end of 30 months you will owe $132,229.72. Then if you increase the payment to $3,750 per month, it will be paid off in 38 months, or 69 months total.

But wait, you say bi-weekly, and the above assumes monthly payments. That changes things. Instead of bi-weekly I'll calculate semi-monthly, which should be pretty close to the same.

At the end of 30 months you will owe $52,807.60. Then if you increase the payment to $3,750 semi-monthly, it will be paid off in 7 months. Possibly 6 1/2 months bi-weekly instead of semi-monthly.