How do I calculate my prepayment savings?
Q: My mortgage balance is $37,500, the interest rate is 5.99 percent, the maturity date 2019. I have been making periodic principle payments. Do you have a calculator that will provide information on how to pay off my mortgage given my current balance and making principle payments?
A: Most of HSH.com's prepayment calculators allow for regular additional payments of principal and will tell you when the loan will end and what your savings will be. Specifically, HSH.com’s It's My Term Prepayment Calculator allows you to enter the date when you want your loan to end and will tell you how much you'll need to pay to make that happen.
If you are making occasional, irregular prepayments of principal, we do have a calculator you can use, but you will need to download it and install it locally on your windows-based computer. You should visit www.hsh.com/hbcalc.html and download version 2.2.05 of HSH.com's Homebuyer's Calculator Suite.
Once you have downloaded and installed it, you can run your loan's amortization using the dropdown for "Amortization"; put in the basic loan parameters of start date, rate and term, then calculate payments.
Next, add your irregular prepayments one at a time on the dates you made them. Click "add prepayments," then using the "single payment" selection, select the payment number where you included extra cash and the amount, then click "apply extra." Repeat as needed for all the prepayments you made, and the updated results will appear at the bottom.
More help from HSH.com
HSH.com on the latest move by the Federal ReserveThe Federal Reserve concluded a meeting today with a quarter-point change to the federal funds rate to a range of 1.25 to 1.5 percent.
Is your VA mortgage refi a 'churn'?Veterans have been lured into refinancing their VA-backed loans multiple times with promises of savings that never materialize.
Home price recovery index: Which metros have improved the most, least?Have home prices in your area fully recovered from the declines suffered during the Great Recession, or are they still struggling to make it back to the peak it reached before the crisis?
The salary you must earn to buy a home in 50 metrosHere’s how much salary you would need to earn in order to afford the median-priced home in your metro area.
10 metros where a home costs about $1,000/monthHSH.com identifies 10 metro areas where you can afford the principal, interest, taxes and insurance payments on a median-priced home for only around $1,000 per month.