Greetings,
I have what should be a basic question, yet I simply don't understand the math.

I have a home with a 296K mortgage, 30 yr fixed. Payment is $2100 a month.

If I were to pay....say an additional 1K a month towards the principal how much sooner would that pay off the loan?
Is there a formula or such I could use to determine what various amounts towards principal would do to the loan term?

Thanks for any help.........

Hi Dr Jim, I can help ya out. How much is the interest rate?

Regardless, of what the actual numbers are, paying an extra $1000 towards your mortgage would help tremendously and cut out a lot of interest and you should pay off the mortgage a lot earlier than making the minimum payment.

Source LINK.

If the $2,100 payment represents only principal and interest the rate would be 7.65% for a 30 year fixed loan.

Paying an additional $1,000 per month in principal would shave 17+ years off your loan. Your home would be paid for in 13 years and you would save almost $300,000 in interest!

Monthly Payment: $ 2100.16
Total Interest:$ 460058.46(No pre-payment)
Total Interest:$ 460058.46 (As given)
SAVINGS: $ 0.00 Total Interest Saved, 0.00 Years shorter loan
2008 Interest $ 22552.38
2009 Interest $ 22342.43
Ending Balance Dec 2009: $ 290490.91
Average Interest Each Month: $ 1277.94


Monthly Payment: $ 3100.16
Total Interest:$ 460058.46(No pre-payment)
Total Interest:$ 161713.36 (As given)
SAVINGS: $ 298345.10 Total Interest Saved, 17.67 Years shorter loan
2008 Interest $ 22122.56
2009 Interest $ 20927.67
Ending Balance Dec 2009: $ 264646.33
Average Interest Each Month: $ 449.20

__________________
Gary Spicuzza, *SAFE
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No Rights Reserved.
*Self Appointed Financial Expert