amortization schedule q


By Oxygen   Follow   Wed, 2 Jan 2013, 9:46am   425 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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  1. Oxygen


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    1   9:50am Wed 2 Jan 2013   Share   Quote   Permalink   Like   Dislike  

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

  2. Call it Crazy


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    2   7:22pm Wed 2 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike  

    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....

  3. Oxygen


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    3   7:31pm Wed 2 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    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

  4. EastCoastBubbleBoy


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    4   10:06pm Wed 2 Jan 2013   Share   Quote   Permalink   Like   Dislike  

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

  5. EastCoastBubbleBoy


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    5   10:23pm Wed 2 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    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)

  6. Oxygen


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    6   5:03am Thu 3 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    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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