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amortization schedule q

By Oxygen   2013 Jan 2, 1:46am   ↑ like   ↓ dislike   1,039 views   6 comments   watch (1)   share   quote  

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  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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

2   Ironman (88/91 = 96% civil)   2013 Jan 2, 11:22am  ↑ like (1)   ↓ dislike (1)   quote   top   bottom   home   share  

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   2013 Jan 2, 11:31am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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   2013 Jan 2, 2:06pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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

5   EastCoastBubbleBoy   2013 Jan 2, 2:23pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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   2013 Jan 2, 9:03pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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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