Part of the nBuy Life Event Network

Our home planning centers: 


— Slide 3: More Interest Than Principal Being Paid —

The Amount of Interest Paid Over the Term of the Loan is Very High

As illustrated below, you can see the total amount of interest and principal paid over the 30-year term at 6% for a $100,000 mortgage loan:

Total Payments $215,838.19
Total Interest Paid $115,838.19
Total Principal Paid $100,000.00

The borrower paid the lender more in interest than the amount that was borrowed.

Month
Starting
Balance
Monthly
Payment
Interest
Prin
1 $100,000.00 $599.55 $500.00 $99.55
2 99,900.45 599.55 499.50 100.05
3 99,800.40 599.55 499.00 100.55
4 99,699.85 599.55 498.50 101.05
357 2,368.52 599.55 11.84 587.71
358 1,780.81 599.55 8.90 590.65
359 1,190.17 599.55 5.95 593.60
360 596.57 599.55 2.98 596.57
Total: $215,838 $115,838 $100,000

Now imagine the accumulated interest payments paid for a $200,000 mortgage at 6% - 30 year term:

Total Payments $431,676.38
Total Interest Paid $231,676.38
Total Principal Paid $200,000.00

What about a $400,000 mortgage:

Total Payments $863,352.76
Total Interest Paid $463,352.76
Total Principal Paid $400,000.00

 

Download this spreadsheet to run your own numbers.

— FREE Download (MS Excel Worksheet)

Scroll down the spreadsheet to see the accumulated interest paid over the life of your loan.

go to the next slide

 

Home Equity Application

FAST Mortgage Payoff

  • [view]Introduction
  • [view]About Your Mortgage
  • [view]SL1: Review
  • [view]SL2: Amortization
  • [view]SL3: Interest Paid
  • [view]SL4: Paying Extra
  • [view]SL5: Acc Types
  • [view]SL6: Which Option
  • [view]SL7: Pay Upfront
  • [view]SL8: Making It Big
  • [view]SL9: Get $$$
  • [view] Mortgage Payoff Tips
  • [view] About MMA Software
  • [view] 10-Step Success Plan
  • [view] Get Started
  • [view] Home Valuations
  • [view] LTV Calculation
  • [view]Amortization Wkst