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amortization schedule q

By Oxygen   2013 Jan 2, 1:46am   1,181 views   5 comments   watch (1)   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    

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

2   Oxygen     2013 Jan 2, 11:31am  ↑ like   ↓ dislike   quote    

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  ↑ like   ↓ dislike   quote    

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

4   EastCoastBubbleBoy     2013 Jan 2, 2:23pm  ↑ like   ↓ dislike   quote    

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  ↑ like   ↓ dislike   quote    

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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