Early Payoff
| by Scott Bilker |
| Scott Bilker is the author of the best-selling books, "Talk Your Way Out of
Credit Card Debt", "Credit Card and Debt Management", and "How to be more Credit
Card and Debt Smart". He is also the Editor and publisher of the FREE DebtSmart®
E-mail Newsletter (http://www.debtsmart.com). Sign up today! |
 Scott,
I would like to pay
off my 80K-15 year, 7.74% mortgage in 8-10 years? How much per month
or year do I have to make to reach this goal?
--John
John,
Thanks for writing--your question is
a great Household Math™ problem! In fact, you just inspired me to
add a section so people can submit their Household Math™
questions.
Your question is very
straightforward. You have an $80,000 mortgage for 15 years at 7.74%.
Assuming these numbers are exactly correct, and no payments have been
made to-date, the monthly payment is $752.57.
To pay off $80,000 at 7.74% in 8
years requires a monthly payment of $1,120.40. This saves you
$27,904.20 over the 15-year loan.
To pay off $80,000 at 7.74% in 10
years requires a monthly payment of $959.67. This saves you
$20,302.20 over the 15-year loan.
Therefore, any monthly payment
greater than or equal to $960 will achieve your goal of paying of the loan in
10 years or less.
Regards,
Scott
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