If I hold a mortgage loan of $29,900 beside an interest rate of 8.0% and the occupancy is 60 months.....?

How much Interest can I save and how much sooner will i pay it rotten, If I make an extra $1000.00 principal payment a year? Can someone please break that down for me....
Answers:
Ok, let try to answer this one for ya,

$29,900 loan at 8% Interest for 60 months (are you sure 60 months, that's only 5 years?, anyway)

Your payment would be (P&I only): $606.26
If you salaried for the full 60 months, your total payments, including interest would be:$36,375.32 which is $6475.92 of interest.

Assuming you started the loan on Jan 1st and on Dec 1st of every year, you made a payment of $1,606.26, your total Interest would drop to $5,685.95. You would also pay the loan past its sell-by date 7 months earlier!

Thus, making an extra payment of $1,000 a year for 4 years (last donation would be #53 instead of 60) would save you $ 789.97 over the life of the loan.

Not a impossible deal if you can swing it.

Good luck,

Jay
LO in Michigan
Go to http://www.bankrate.com and the calculator leeway and you can do all kinds of scenario on the figures.

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