03-23-2011, 12:19 AM
@ davester, I think we're all talking about the same thing.
150,000 mortgage
30 years
5%
Monthly payment $805.23
Payment 1: $805.23 = Principal $180.23 + Interest $625.00
Payment 2: $805.23 = Principal $180.98 + Interest $624.25
Payment 3: $805.23 = Principal $181.74 + Interest $623.49
....
Payment 359 : $805.23 = Principal $798.56 + Interest $6.67
Payment 360 : $805.23 = Principal $801.89 + Interest $3.34
When you make that extra principal payment everything is bumped up a month but the interest is still lopped off the back end. You don't have to pay that last month of interest.
Or is this completely wrong? Ughh.. no wonder I leave the bill paying to the wife :-P
150,000 mortgage
30 years
5%
Monthly payment $805.23
Payment 1: $805.23 = Principal $180.23 + Interest $625.00
Payment 2: $805.23 = Principal $180.98 + Interest $624.25
Payment 3: $805.23 = Principal $181.74 + Interest $623.49
....
Payment 359 : $805.23 = Principal $798.56 + Interest $6.67
Payment 360 : $805.23 = Principal $801.89 + Interest $3.34
When you make that extra principal payment everything is bumped up a month but the interest is still lopped off the back end. You don't have to pay that last month of interest.
Or is this completely wrong? Ughh.. no wonder I leave the bill paying to the wife :-P