[NA]mortgage payoff calculations[NA]

Let'sgoflying!

Let'sgoflying!

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Dave Taylor
I have no idea who to ask this, so I will try POA first.
Or, maybe someone can tell me who to ask.

I have a mortgage with an individual not an institution.
Let's say I didn't spend as much on my airplane as I thought this year and I want to pay the note down by $10K.
Looking at the amortization schedule (columns of remaining principal, balance after each monthly payment, amount of payment applying to P and I)......

.....after paying the $10K, where do we go with the schedule?
Presumably the remaining principal is $10K less.
What is the next porportion of P & I on the next payment?

Maybe the cleanest way to do this is to find a month in the future, where paying something near $10K toward the P. would bring the note to that month?

Probably need to find an example? Lemme know.
 
Make a payment of $10,000 plus the interest due for that months payment.
Balance $120,000
Rate 4%
Interest due for this month is 120,000 times .04 divided by 12. That's $400
So make a payment of $10,400. The balance will then be $110,000
 
Sire, do you require a spreadsheet to address this trivial task which is clearly beneath your time and attention? The challenges currently facing the realm are far more important than this mere financial transaction.
 
A lot of times, a homeowner, suddenly wants to know how much prepaying his mortgage will hasten the pay off date, or how much additional principle payment would be required each month in order to pay off his mortgage by a certain date. And, all he knows is the current mortgage balance, the payment (PITI) amount, and the interest rate (APR). Most of the online calculators aren't flexible enough to do this. The solution is to set up a spread sheet that shows each of the remaining periodic payments, and their result. Easy to do!

If none of the above help you answer your question, let me know, I might be able to help.
 
Just for demonstration purposes I made a completely fictional and outrageous amortization schedule - it is an excel file but you cannot upload it, so I made a pdf of it. See P2 of the pdf.

Let's say in Feb 2018, the mortgager pays the usual amount of $3786.57 (Interest 675.02 Principal 3111.55) resulting in a new balance of $199,394.24, and wants to pay an additional amount of around $10K.

If the additional amount is exactly $10,000.00, then the amortization must be completely recalculated. That's not horrible, can be done. But not very clean.

I am thinking if the additional amount paid is $199,394.24 minus the remaining principal owed before June's payment of $189,997.22 = $9397.02 then the mortgager can simply hop down the chart and now start paying June's amount in March.
Looks easy & clean to me, what say you eruditians?
 

Attachments

  • Bogus Amort Sched.pdf
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Let'sgoflying! said:
I have no idea who to ask this, so I will try POA first.
Or, maybe someone can tell me who to ask.

I have a mortgage with an individual not an institution.
Let's say I didn't spend as much on my airplane as I thought this year and I want to pay the note down by $10K.
Looking at the amortization schedule (columns of remaining principal, balance after each monthly payment, amount of payment applying to P and I)......

.....after paying the $10K, where do we go with the schedule?
Presumably the remaining principal is $10K less.
What is the next porportion of P & I on the next payment?

Maybe the cleanest way to do this is to find a month in the future, where paying something near $10K toward the P. would bring the note to that month?

Probably need to find an example? Lemme know.
Click to expand...

You really need to start with your mortgage agreement. You are dealing with an individual not an institution. You may not be on an amortization schedule and you may not be allowed to prepay. Understand the signed agreement first, and your answer should be easier to find.
 
I actually made up an Excel amoritization schedule that I was going to upload. It will give re-amoritized amounts if you pay extra. PM an email and I'll send it to you.
 
Let'sgoflying! said:
Looks like you are agreeing with my pdf above. If so, thanks. If not, what difference?

Paul. What? Nvmd.
Click to expand...
The calculations are all "live" so a principal payment of any value at any time may be considered.
 
Anymouse said:
I actually made up an Excel amoritization schedule that I was going to upload. It will give re-amoritized amounts if you pay extra. PM an email and I'll send it to you.
Click to expand...
The sheet shared in via google is already there.
 
PaulS said:
You really need to start with your mortgage agreement. You are dealing with an individual not an institution. You may not be on an amortization schedule and you may not be allowed to prepay. Understand the signed agreement first, and your answer should be easier to find.
Click to expand...

Agree! Many owner/individual financed mortgages have terrible rules/requirements and offer very little of the protections you typically have with a standard banking institution. Beware! You could be thrown out of your house for missing just one payment and if you have not read the mortgage agreement carefully you might be unpleasantly surprised with potential early payment penalties and such. Read the mortgage agreement first. These owner financed mortgages are written to substantially benefit the owner, not you.


Sent from my iPad using Tapatalk
 
Pull up, Go round! Not necessary or helpful!
Stop stop stop with the warnings & cautions! Not necessary.
Back to the mechanics, the math.
 
Let'sgoflying! said:
Pull up, Go round! Not necessary or helpful!
Stop stop stop with the warnings & cautions! Not necessary.
Back to the mechanics, the math.
Click to expand...
Well if ya want the basic formulae instead of the spreadsheet functions your grace, those can be supplied and incorporated in the shared spreadsheet. I humbly assumed that my king would accept the built-in formulae but I have been mistaken in this matter on perhaps one previous occasion. Perhaps if the king's wizard could share some bud light the required spreadsheet may be produced sooner...or later...
 
denverpilot said:
https://www.wikihow.com/Calculate-Mortgage-Payoff

As one of many sources found via simple Google search. YMMV.

Try this link... it's a good one. :)

http://lmgtfy.com/?q=mortgage+math

LOL...
Click to expand...
Way back when Excel was young (pre-Microsoft) and I was somewhat younger I had the joy of testing the accuracy of many of the built-in functions in order to satisfy some academics. The good news that they work and have always work. The bad news is that I'll never get the wasted time back.
 
Let'sgoflying! said:
Pull up, Go round! Not necessary or helpful!
Stop stop stop with the warnings & cautions! Not necessary.
Back to the mechanics, the math.
Click to expand...
My point was the mechanics/ math are defined by your agreement. Amortized schedules maximize interest payments while minimizing principal payments. Basically large amounts of interest is paid at the beginning of the loan period where near the end of the loan period you are basically paying principal. The end result of amortization is the lender makes more money. Most institutional mortagages use amortization schedule.

Individuals can pretty much do what they want as a lender. If I lend someone money I do simple interest where the principle is paid in equal portions over the period of the loan. Interest is the percentage of the principal owed at payment time. I'm not a dick. To understand your payments you need to know your terms..... I haven't seen them yet. There are also different amortization schedules. With amortization, if you are near the end of the loan you are paying mostly principal.... Sometimes it's better to keep making payments rather than paying off since your interest portion is smaller at that point.
 
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