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amortization schedule q


By Oxygen   Follow   Wed, 2 Jan 2013, 1:46am PST   525 views   6 comments
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is there a name for the month when the mortgage payment goes from more interest than principal reduction to more principal reduction than interest (i'm thinking "breakeven month" but that doesnt sound right for the scenario).

for example
i = 7%
n = 25 years
principal = 200k

http://www.amortization-calc.com/#loan-200000-25-7-1-2013-2
according to this amort table in the link above, on 2/2028, the mortgage payment becomes more principal reduction than interest payment.

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Oxygen   Wed, 2 Jan 2013, 1:50am PST   Share   Quote   Permalink   Like   Dislike     Comment 1

i'm curious about that specific month when the principal reduction overtakes the interest portion

Call it Crazy   Wed, 2 Jan 2013, 11:22am PST   Share   Quote   Permalink   Like (1)   Dislike (1)     Comment 2

Oxygen says

i'm curious about that specific month when the principal reduction overtakes the interest portion

It doesn't matter, you won't be living in that house in 2028....

Oxygen   Wed, 2 Jan 2013, 11:31am PST   Share   Quote   Permalink   Like   Dislike     Comment 3

Call it Crazy says

It doesn't matter, you won't be living in that house in 2028....

based on statistics, you would be correct

EastCoastBubbleBoy   Wed, 2 Jan 2013, 2:06pm PST   Share   Quote   Permalink   Like   Dislike     Comment 4

Well if there is no name, I think we should try to come up with one.

EastCoastBubbleBoy   Wed, 2 Jan 2013, 2:23pm PST   Share   Quote   Permalink   Like   Dislike     Comment 5

Tried uploading chart based on the example in your OP - but couldn't seem to do it.

The "breakeven" point (for lack of a better term) occurs at month 182 (out of 300)

Oxygen   Wed, 2 Jan 2013, 9:03pm PST   Share   Quote   Permalink   Like   Dislike     Comment 6

EastCoastBubbleBoy says

Tried uploading chart based on the example in your OP - but couldn't seem to do it.

The "breakeven" point (for lack of a better term) occurs at month 182 (out of 300)

yea, $706.07 interest portion, $707.48 principal reduction portion, and a mortgage balance of $120,333.77

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