Posted on: 16th Jan, 2011 09:55 am
I have a 729k 1st (no 2nd) for 15y at 3.875% and want to pay 229k to principle as a lump sum. How do I calculate the interest savings over the course of the loan?
Hi wjohnstonmd,
You can check out the given calculator in order to find out the interest savings:
http://www.mortgagefit.com/calculators/refinance.html
You can check out the given calculator in order to find out the interest savings:
http://www.mortgagefit.com/calculators/refinance.html
Thanks!
A $729,000 loan for 15 years at 3.875% has a monthly principal and interest payment of $5,346.77
180 payments totals $962,419
Subtract $729,000 in principal paid and interest is left = $233,449
If you pay down $299,000, the balance left is $500,000
You continue to pay $5,346.77 and that pays off in 112 months
Total paid = $598,838
Subtract the $500,000 paid in principal and interest is left = $98,838
You saved in interest $233,449 minus $98,838 = $134,611
180 payments totals $962,419
Subtract $729,000 in principal paid and interest is left = $233,449
If you pay down $299,000, the balance left is $500,000
You continue to pay $5,346.77 and that pays off in 112 months
Total paid = $598,838
Subtract the $500,000 paid in principal and interest is left = $98,838
You saved in interest $233,449 minus $98,838 = $134,611
