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Home >> Manage Your Money
How Long to Pay Off Mortgage?
We took out a mortgage for $83,350 on April 14, 2003. In August 2007, we paid $6700. On principal, we now owe $45,600. If we pay an extra payment of $100 on principal from now on, how soon will it be paid off? Right now, it will take six years, and eight months. The payment is $719.12 and 6.74%.
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 Use Excel or another program where you can build your own customized amortization table. This allows you to compute the amount of each payment that went to, or will go to principal, interest, and escrows. Start by asking your lender for a printout of your current loan history. Be sure to allow for factors such as a 30/360 year or actual days in the computation.
Prepaying a mortgage loan can often save you a lot of interest and allow you to own your home faster. Paying that $100 extra this month means that you don't owe them that $100 for next ten years, as an example, so your interest savings is for ten years time. By building your own amortization table you can play "what-if" and see what a difference these extra payments make.
Published on BankingQuestions.com 9/22/10
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