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amortization schedule q


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2013 Jan 2, 1:46am   2,337 views  5 comments

by Oxygen   ➕follow (1)   💰tip   ignore  

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.

#housing

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1   Oxygen   2013 Jan 2, 1:50am  

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

2   Oxygen   2013 Jan 2, 11:31am  

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

3   EastCoastBubbleBoy   2013 Jan 2, 2:06pm  

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

4   EastCoastBubbleBoy   2013 Jan 2, 2:23pm  

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)

5   Oxygen   2013 Jan 2, 9:03pm  

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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