Posted on: 28th Feb, 2011 02:08 pm
Hello, I am trying to figure out how much principal I would have paid at the end of 5 years with same loan amount but different loans. Any help would be very much apprciated.
Home purchase price: 400,000
Down payment 120,000
Balance 280,000
scenario one: 15 yr fixed at 4% payment $2071.00
scenario two: 5/1 ARM 3.25% payment $1219.00 but paid at same monthly payment as the 15 year fixed $2071.00 with the extra $852.00 toward principal.
How much would I have payed toward principal at the end of 5 years in each scenario.
Thanks, Kevin
Home purchase price: 400,000
Down payment 120,000
Balance 280,000
scenario one: 15 yr fixed at 4% payment $2071.00
scenario two: 5/1 ARM 3.25% payment $1219.00 but paid at same monthly payment as the 15 year fixed $2071.00 with the extra $852.00 toward principal.
How much would I have payed toward principal at the end of 5 years in each scenario.
Thanks, Kevin
You should contact your lender and he will help you know how much you've paid off in 5 years.
kwh4, at the end of 5 years the balance on the 15 year fixed at 4% should be about $204,565 reducing the principal by $75,435.
The 5/1 ARM at 3.25% making $852 extra principal payments would have a balance around $194,632 for a reduction of prinicipal of $85368 - nearly $10,000 added principal reduction than the 15 year loan.
The 5/1 ARM at 3.25% making $852 extra principal payments would have a balance around $194,632 for a reduction of prinicipal of $85368 - nearly $10,000 added principal reduction than the 15 year loan.
