Q: I need to create a custom amortization schedule for a $20,000 loan, 7% interest, first year monthly payment of $200, $300 per month thereafter. I need a complete schedule and final payoff date. Can you help?
A: HSH.com's Homebuyers Calculator Suite allows for complex amortization. You need to first change the term until you find a $200 per month payment (or close to it); in this case, it is about 150 months. Then, you'll start prepaying the loan by an additional $100 per month starting in month 13. That chops the total term down to 91 months, with a total interest cost of just over $6,000 for the term. You should download a copy of the calculator so that you can create and print the schedule you need.
A 25-year expert observer of the mortgage and consumer debt markets, Keith Gumbinger has been cited in thousands of articles covering a wide range of consumer finance and economic topics in outlets ranging from the Wall Street Journal to the Bottom Line newsletters. He has been a featured guest on national broadcasts for CNN, CNBC, ABC, CBS and NBC television networks and has been heard on NPR and other national and local radio programs. Keith is the primary researcher and writer for HSH.com's MarketTrends newsletter and has authored or co-authored a number of consumer guides on mortgages, home equity, refinancing and more.
