Can someone help me with a mortgage math problem?

[Soupermom]

I just know someone here will be able to help me figure this out!

We got our mortgage in June 2003; 30years at 5%. Our payments were $679/month. I've been paying $1200 since about 2004. Our payoff as of today is $72,000ish. If I begin paying $2,000/month (extra toward principal)on February 1st, when would the mortgage be paid off? I know its February 2013 or sooner...

Thanks for your help!

 

[dhuba]

You should be able to find a calculator online to help you with the figures. I just did this not long ago. It is really an incentive to keep upping the payment if you can.

 

[SILLYANDI]

http://www.mortgagecalculator.org/


Try this one...

 

[Blue.Fairy2]

w w.mor tga gef it.c om/ca lcula tors/ ext ra-pa ym ent.html

If you add $2,000.00 to your monthly payment, you will pay off this debt in 29 payments instead of 141, and you will save 18,697.16 in interest charges. This savings translates into a guaranteed, tax-free, average annual return of 32%. And that's not even considering the emotional returns you'll get when you pay off this debt 112-months (9 years, 4 months) ahead of schedule!!

 

[Soupermom]

we don't pay taxes in our mortgage. I'm confused as to how to fill it out...

 

[Blue.Fairy2]

we don't pay taxes in our mortgage. I'm confused as to how to fill it out...

that one will not work with what you want to know.

2.41 years is the answer

 

[Soupermom]

Thanks Blue.Fairy2! I was able to fill out the form from your link.

 

[Blue.Fairy2]

Thanks Blue.Fairy2! I was able to fill out the form from your link.

np yw! and congrats on getting where you are so far!!!!!

 

[Soupermom]

Now I'm confused again...how did you get 2.41 years when I got 40 months? Is it because of the taxes we don't pay with the mortgage?

 

[Blue.Fairy2]

Now I'm confused again...how did you get 2.41 years when I got 40 months? Is it because of the taxes we don't pay with the mortgage?

I put in your figures and it came up 29 payments or 2.416 years

you said you had $72,000 left on the mortgage your payment was 679.00 and you would be putting an extra $2000 a month towards it so I took it to mean you would be paying $2679.00 a month, is that not right?

 

[KibbyCat]

I put in your figures and it came up 29 payments or 2.416 years

you said you had $72,000 left on the mortgage your payment was 679.00 and you would be putting an extra $2000 a month towards it so I took it to mean you would be paying $2679.00 a month, is that not right?

No, I think she means she's going to pay $2000 a month instead of $679.

Right now, she's paying $1200 a month, instead of $679, so it's an additional $800, not $2000 extra.

 

[Blue.Fairy2]

No, I think she means she's going to pay $2000 a month instead of $679.

Right now, she's paying $1200 a month, instead of $679, so it's an additional $800, not $2000 extra.

if that is the case then it is 40 months or 3.33 years

 

[maggiew]

Good job!

I'm also impressed that you have a mortgage for $679!!! Wow!

Maggie

 

[puffkin]

Good job!

I'm also impressed that you have a mortgage for $679!!! Wow!

Maggie

I was too until I realized my mortgage is only about $800 a month. My monthly payments include taxes/insurance though so it is significantly more than that

We'd be on easy street if we only had the mortgage to pay

 

[Soupermom]

OP here...yes, my payment is supposed to be $679, but I have been paying $1,200. I now plan to increase the payment to a total of $2,000/month. I came up with the 40 month figure, too Blue.Fairy.

Thanks everyone for your help. I was hoping it would be 3 years or less, but I can live with 3.33 years. DD will be in college in 2.5 years so maybe will make a push at the end and pay it off even earlier. Our original mortgage of 30 years will be paid off in 10 or less either way! Yay!!

For the PP who was impressed with the $679 figure...this does NOT include taxes/insurance. Original loan amount was for around $140,000 I think. 3BR, 2Bath ranch on 5 acres of woods/prairie. We love where we live! Taxes are around $4000.00 currently, seem to go up every year! Great schools!!