Author Topic: Help with time to payoff mortgage  (Read 2455 times)

Suzannabanana

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Help with time to payoff mortgage
« on: September 08, 2016, 04:25:42 PM »
Hello everyone - So I'm wondering if anyone can help me figure out my timeline to payoff my mortgage. I cannot seem to find a financial calculator that answers this particular question on timeline to payoff. I took out a mortgage of $440K for 30 years at 4.325% in Sept/Oct of 2009.  I've paid down the mortgage to $304K by paying my monthly payment($2216 does not include taxes or insurance), a $50K lump sum payment to the principle in October 2015 and I just made another $39K payment a few days ago. If I only continued to pay my mortgage payment of $2216, when would the house be paid off? If anyone could guide me to a calculator - I would be happy to use it. Thank you:)

Exprezchef

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Re: Help with time to payoff mortgage
« Reply #1 on: September 08, 2016, 05:56:22 PM »
Maybe one of the mortgage calculators found here can help.

http://www.dinkytown.net

MDM

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Re: Help with time to payoff mortgage
« Reply #2 on: September 08, 2016, 06:43:17 PM »
From http://forum.mrmoneymustache.com/mustachianism-around-the-web/amortization-schedule-calculator/msg1219175/#msg1219175:

1. Open a new sheet in Excel
2. Press the "sheet1" tab on the bottom with a right-click
3. "Insert" --> "Spreadsheet solutions" --> "Loan Amortization"

Ensign1999

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Re: Help with time to payoff mortgage
« Reply #3 on: September 09, 2016, 10:08:07 AM »
Based on the numbers you provided ($304,000 balance, 4.325% interest rate, $2,216 P&I payment) the loan will be paid off in July of 2032.  You have 190 payments left and you will pay just over $116,000 in interest over those 190 payments.  I assume you rounded your balance and payment so these numbers are not exact, but pretty close.

One thing you may think about is refinancing your loan.  If you plan on staying in this home for the long term, or at least owning it for a long time even if you are not living there (rental?) then the numbers start making sense to consider refinancing it down to a 15 year loan.

For example, if it is your primary home and you have good credit you should be able to get a rate someplace around 2.625% (I just refinanced an investment property down to this rate).  You would have 180 payments left, pay just over $64,000 in interest and your P&I would drop to $2,045.  You would save $171 a month on your payment and $52,000 in interest over the life of the loan.  You would have to pay the closing costs which should not be more than $8k (assuming you buy some points to get the interest rate down).

I just went on www.aimloan.com and ran a quick rate quote.  I assumed you have good credit, the house is still worth $440k, your loan would be $304k, and I picked a random state and county.  It came back with even better numbers because it is your primary.  They were quoting a rate of 2.25% with only 1.7 points and $7,800 in closing costs.  You would save $62,000 over the loan in interest, save $225 off your monthly P&I payment (another $40k over the 180 payments) and shave off 10 payments (another $22,160).  In total, if you refinanced and got that rate...you could end up saving yourself $124k!

My numbers may be off a little, but they are close enough to know that you are in a position that refinancing makes really good sense if you plan on owning this house long term.  There are some refinance calculators out there (just google them).  I would use www.aimloan.com to get a quick quote to get a ballpark idea of what you could be looking at and then call/look at other sights to see what your options might be.

Hope this helped and good luck!

bpleshek

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Re: Help with time to payoff mortgage
« Reply #4 on: September 09, 2016, 01:04:57 PM »
Besides what was mentioned above, you could also try your mortgage company website.  It might already be built in.  Some come in the form of a downloadable PDF and others as an online page.  A few others I have seen have what-if scenarios for people who want to try to use their bi-weekly or other prepayment options.

Brian

Suzannabanana

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Re: Help with time to payoff mortgage
« Reply #5 on: September 10, 2016, 03:25:33 PM »
Wow! You guys are great.

 MDM, I can't believe that calculator was living in my Excel spreadsheet all this time. It was perfect for what I needed.

Ensign, thank you for taking that next step for me. You answered the question I was about to ask next. All your assumptions were correct (plan to stay in this house, good credit etc). I was going to try and determine if I should stay in my current loan or refinance. I was worried that I would pay more in interest if I started with a new loan. But that doesn't seem to be the case. Thank you again, I'm going to explore that option.

MDM

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Re: Help with time to payoff mortgage
« Reply #6 on: September 10, 2016, 08:43:43 PM »
MDM, I can't believe that calculator was living in my Excel spreadsheet all this time. It was perfect for what I needed.

It is nice that Microsoft makes it so easy to get, although if it weren't for JustGettingStarted1980's note I wouldn't have known to look there.  I've had a copy of that template for years - it really is well done - but IIRC it came as a download from a Microsoft web site at the time.

Ensign1999

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Re: Help with time to payoff mortgage
« Reply #7 on: September 12, 2016, 07:17:40 AM »
I was worried that I would pay more in interest if I started with a new loan. But that doesn't seem to be the case. Thank you again, I'm going to explore that option.

Always glad to help.  Hopefully it works out for you.  I'd be interested in a follow up report on what you end up doing.  Everything you posted points to you being in a position to not only cut out some payments (190 down to 180, or maybe a few less by the time a refinance goes through), reduce your payment, and save big on the loan even after paying any refinance fees.

Suzannabanana

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Re: Help with time to payoff mortgage
« Reply #8 on: September 12, 2016, 10:04:06 AM »
Yes, I will definitely give you a report back. A little accountability LOL.

I'm going to start exploring where the best place to go to refinance. The few times I've done it, I've gone back to my realtor (who is also a friend). But I think I was a little naive and probably didn't get the best deal. My goal is to have the house paid off in 10 years - so the interest rate and number of payments does matter. Thank you again!

Suzannabanana

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Re: Help with time to payoff mortgage
« Reply #9 on: September 30, 2016, 11:20:39 AM »
Hello Ensign, MDM - So I ended up refinancing with AIMLOAN.com. Super easy to deal with and I sign papers on Monday. I took a 2.5% loan and paid .47 in points. Super happy!!! Thank you. You made a difference in my financial life!!!! Also, as an added bonus - my home loan was with Wells Fargo and it felt good to close my account with them and I hope that CEO gets fired (now I hope they don't get to service my loan again!). Seriously. What a group of crooks and to have the audacity to fire 5000 worker bees - oh man, makes me so mad. Ok, off my soap box now.

THANK YOU THANK YOU

MDM

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Re: Help with time to payoff mortgage
« Reply #10 on: September 30, 2016, 11:27:06 AM »
Well done - good for you!

Ensign1999

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Re: Help with time to payoff mortgage
« Reply #11 on: September 30, 2016, 12:19:51 PM »
That is awesome.  I'm glad we could help!

fishnfool

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Re: Help with time to payoff mortgage
« Reply #12 on: September 30, 2016, 12:57:00 PM »
Congrats!

I also closed a refi with aimloan a few weeks ago. I highly recommend them and like you, happy to get away from WF right now!

Elle 8

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Re: Help with time to payoff mortgage
« Reply #13 on: October 02, 2016, 06:03:19 AM »
Suzanna, that sounds like a great deal!  May I ask what the closing costs were (excluding points)?  I'm thinking of refinancing myself and have been quoted $2500 - $3000.  I'm wondering if that's average.  Thanks.

Never mind - It's right there on the website!
« Last Edit: October 02, 2016, 06:06:25 AM by Elle 8 »