Modeling an extra mortgage payment
Submitted by chertz on Sat, 06/24/2017 - 08:32Is there any easy way to model making a very occasional, but significant (up to 10% of balance), extra payment of principal on a mortgage?
Is there any easy way to model making a very occasional, but significant (up to 10% of balance), extra payment of principal on a mortgage?
I plan to retire in approx 3 years and want to model refinancing my mortgage at that time (after having made extra payments during those years). I don't see how to do that in ESP. The primary home section asks for current mortgage and has a section for a change of primary home which assumes selling the current home and buying a new one. But that is not what I want to model. I want the program to reflect my current mortgage but then model refinancing it 3 years out at retirement. How?
Hi,
I'm trying to model a move, including selling my current house and using the proceeds as a balloon payment on a new house mortgage. If I put down a 20% down payment on the Change of Home panel amortized over 15 years, that will get reflected in the housing report. If I increase the the down payment to reflect a balloon payment, the housing report will show a lower mortgage payment, but still over 15 years, whereas in reality a balloon payment will shorten the duration of the mortgage period, but not the contractual monthly payment.
I rolled my information over to 2016 and notice that the annual mortgage payment in the housing report does not equal my monthly mortgage payment x12. It's approximately $1000 less than it should be by my calculation. Note that I did update the mortgage information with mortgage balance and years remaining.
TIA for reply.
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