Question.. How does making a principal payment on a mortgage change my amortization schedule? Any resources, tools would be helpful.
Jocelyn Collins: Bankrate.com
Bankrate.com – Compare mortgage, refinance, insurance, CD rates
Nicolas Morales: Hahahaha
Jocelyn Collins: Glad you liked it.
Finley Fox: check it out at bret whissel amortization site
Stella Clark: Use Tvalue to recalculate your pay off date. It wont change your payment amount. But it will speed up your payoff time. Unless you are making large or regular principle payments you wont see a large change in your payoff amount or date.
Isabella Harmon: Is tvalue a website?
Stella Clark: No its a.software
Isabella Harmon: Stella Clark: free?
Stella Clark: No, its a industry software.
Emiliano Mckenzie: Contact me for information on how you can payoff your 30 year loan anywhere from 3 to 10 years faster.
Francesca Crawford: Interest is calculated daily on principal. I recommend making several multiple smaller payments to principal during the month and it can absolutely shave years off of a loan, even if one is paying only $100 here or there. Every little bit helps.
Isabella Harmon: I really just need an efficient way to track it. Im possibly buying a few properties with the mortgage being held privately. We want to make extra payments monthly, but wont be able to start immediately.
Luciana Sims: Great question here is an introduction about, interestreduction.com Its 12 minutes long. It does ask for you name and mine because a group of us send it to people so helps us keep track of who has watched it.
Debt Reduction Introduction
Hailey Moreno: Francesca Crawford: is VERY close to making this an even better strategy.. Heres a cool trick… Because mortgages are closed ended loan products and theyre fixed to a schedule, why not switch to a better instrument where its open ended terms and its not fixed to a schedule. Heres what i mean… IF you can get a Home Equity Line of Credit, even at 2nd position, you can start transferring the principle balance on the mortgage to your Home Equity Line of Credit (HELOC). Whats great is that HELOCs are open-ended and you can make draws out of the line just like a credit card. Which means, you can begin to treat the HELOC like a checking account and start making direct deposits to it from rent or from W-2. Heres the even cool part, HELOCs are not fixed to a schedule and it is what I consider to be a TRUE average daily interest based loan. AS you kill the principle balance, your monthly payment will go down. Take your entire income and mash it into the HELOC and youll be saving a CRAP TON of interest as you just killed the principle balance by a significant amount. If you apply this to a rental property or even on your own resident, you can pay off the existing 1st position loan in 2/3 less time with 2/3 less interest while you STILL have income utilization. Get it? Its better than just apply extra principle payment to the mortgage as you get MUCH better usage on your income. Michael Lush, did I miss anything?