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Q: What will be the effect of paying my mortgage principal down? ( Answered ,   3 Comments )
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 Subject: What will be the effect of paying my mortgage principal down? Category: Business and Money > Finance Asked by: gisgirl-ga List Price: \$10.00 Posted: 05 Aug 2005 21:34 PDT Expires: 04 Sep 2005 21:34 PDT Question ID: 552316
 ```We currently owe \$160,000 on our house. We pay \$1200 a month mortgage plus taxes. [5.99%] We have the option of paying more, of course, in order to pay down the principal. If we pay \$200 more a month for 10 years, what are the advantages. We our primarily hoping to get payments lower to be able to afford them with retirement money - which will be less than our present income. I would like to know how much we would owe on the debt in 10 yrs if we add that \$200 and what we will owe if not. Also, could it reduce future payment in that amount of time?```
 Subject: Re: What will be the effect of paying my mortgage principal down? Answered By: richard-ga on 06 Aug 2005 05:26 PDT Rated:
 ```Hello and thank you for your question. I did two sets of calculations on Excel which I will print out below. In each line you will see the payment number, then interest paid (which is 5.99\$/12 times the principal balance), then principal reduced (which is the payment made minus the interest paid, then total paid, then principal balance. If you only pay 1,200 per month, you have 220 payments (18.33 years) to go. If you pay 1,400 per month for 120 payments, then 1,200 for the rest, you will have made 180 payments altogether (15 years), that is, 10 years of 1,400 per month and 5 years of 1,200 per month. Google Answers doesn't always do a good job of presenting copied-and-pasted material--if it comes out as a big jumble I'll post an Answer Clarification to tell you how to read it--here goes: Without the extra payment: 1 798.67 401.33 1,200.00 159,598.67 2 796.66 403.34 1,200.00 159,195.33 3 794.65 405.35 1,200.00 158,789.98 4 792.63 407.37 1,200.00 158,382.61 5 790.59 409.41 1,200.00 157,973.20 6 788.55 411.45 1,200.00 157,561.75 7 786.50 413.50 1,200.00 157,148.25 8 784.43 415.57 1,200.00 156,732.68 9 782.36 417.64 1,200.00 156,315.03 10 780.27 419.73 1,200.00 155,895.31 11 778.18 421.82 1,200.00 155,473.48 12 776.07 423.93 1,200.00 155,049.56 13 773.96 426.04 1,200.00 154,623.51 14 771.83 428.17 1,200.00 154,195.34 15 769.69 430.31 1,200.00 153,765.03 16 767.54 432.46 1,200.00 153,332.58 17 765.39 434.61 1,200.00 152,897.96 18 763.22 436.78 1,200.00 152,461.18 19 761.04 438.96 1,200.00 152,022.21 20 758.84 441.16 1,200.00 151,581.06 21 756.64 443.36 1,200.00 151,137.70 22 754.43 445.57 1,200.00 150,692.13 23 752.20 447.80 1,200.00 150,244.33 24 749.97 450.03 1,200.00 149,794.30 25 747.72 452.28 1,200.00 149,342.03 26 745.47 454.53 1,200.00 148,887.49 27 743.20 456.80 1,200.00 148,430.69 28 740.92 459.08 1,200.00 147,971.60 29 738.62 461.38 1,200.00 147,510.23 30 736.32 463.68 1,200.00 147,046.55 31 734.01 465.99 1,200.00 146,580.56 32 731.68 468.32 1,200.00 146,112.24 33 729.34 470.66 1,200.00 145,641.58 34 726.99 473.01 1,200.00 145,168.58 35 724.63 475.37 1,200.00 144,693.21 36 722.26 477.74 1,200.00 144,215.47 37 719.88 480.12 1,200.00 143,735.35 38 717.48 482.52 1,200.00 143,252.83 39 715.07 484.93 1,200.00 142,767.90 40 712.65 487.35 1,200.00 142,280.55 41 710.22 489.78 1,200.00 141,790.76 42 707.77 492.23 1,200.00 141,298.53 43 705.32 494.68 1,200.00 140,803.85 44 702.85 497.15 1,200.00 140,306.70 45 700.36 499.64 1,200.00 139,807.06 46 697.87 502.13 1,200.00 139,304.93 47 695.36 504.64 1,200.00 138,800.29 48 692.84 507.16 1,200.00 138,293.14 49 690.31 509.69 1,200.00 137,783.45 50 687.77 512.23 1,200.00 137,271.22 51 685.21 514.79 1,200.00 136,756.43 52 682.64 517.36 1,200.00 136,239.08 53 680.06 519.94 1,200.00 135,719.14 54 677.46 522.54 1,200.00 135,196.60 55 674.86 525.14 1,200.00 134,671.46 56 672.24 527.76 1,200.00 134,143.69 57 669.60 530.40 1,200.00 133,613.29 58 666.95 533.05 1,200.00 133,080.25 59 664.29 535.71 1,200.00 132,544.54 60 661.62 538.38 1,200.00 132,006.16 61 658.93 541.07 1,200.00 131,465.09 62 656.23 543.77 1,200.00 130,921.32 63 653.52 546.48 1,200.00 130,374.83 64 650.79 549.21 1,200.00 129,825.62 65 648.05 551.95 1,200.00 129,273.67 66 645.29 554.71 1,200.00 128,718.96 67 642.52 557.48 1,200.00 128,161.48 68 639.74 560.26 1,200.00 127,601.22 69 636.94 563.06 1,200.00 127,038.16 70 634.13 565.87 1,200.00 126,472.29 71 631.31 568.69 1,200.00 125,903.60 72 628.47 571.53 1,200.00 125,332.07 73 625.62 574.38 1,200.00 124,757.69 74 622.75 577.25 1,200.00 124,180.43 75 619.87 580.13 1,200.00 123,600.30 76 616.97 583.03 1,200.00 123,017.27 77 614.06 585.94 1,200.00 122,431.33 78 611.14 588.86 1,200.00 121,842.47 79 608.20 591.80 1,200.00 121,250.67 80 605.24 594.76 1,200.00 120,655.91 81 602.27 597.73 1,200.00 120,058.19 82 599.29 600.71 1,200.00 119,457.48 83 596.29 603.71 1,200.00 118,853.77 84 593.28 606.72 1,200.00 118,247.05 85 590.25 609.75 1,200.00 117,637.30 86 587.21 612.79 1,200.00 117,024.50 87 584.15 615.85 1,200.00 116,408.65 88 581.07 618.93 1,200.00 115,789.72 89 577.98 622.02 1,200.00 115,167.71 90 574.88 625.12 1,200.00 114,542.58 91 571.76 628.24 1,200.00 113,914.34 92 568.62 631.38 1,200.00 113,282.97 93 565.47 634.53 1,200.00 112,648.44 94 562.30 637.70 1,200.00 112,010.74 95 559.12 640.88 1,200.00 111,369.86 96 555.92 644.08 1,200.00 110,725.78 97 552.71 647.29 1,200.00 110,078.49 98 549.48 650.52 1,200.00 109,427.96 99 546.23 653.77 1,200.00 108,774.19 100 542.96 657.04 1,200.00 108,117.16 101 539.68 660.32 1,200.00 107,456.84 102 536.39 663.61 1,200.00 106,793.23 103 533.08 666.92 1,200.00 106,126.30 104 529.75 670.25 1,200.00 105,456.05 105 526.40 673.60 1,200.00 104,782.45 106 523.04 676.96 1,200.00 104,105.49 107 519.66 680.34 1,200.00 103,425.15 108 516.26 683.74 1,200.00 102,741.42 109 512.85 687.15 1,200.00 102,054.27 110 509.42 690.58 1,200.00 101,363.69 111 505.97 694.03 1,200.00 100,669.66 112 502.51 697.49 1,200.00 99,972.17 113 499.03 700.97 1,200.00 99,271.20 114 495.53 704.47 1,200.00 98,566.73 115 492.01 707.99 1,200.00 97,858.74 116 488.48 711.52 1,200.00 97,147.22 117 484.93 715.07 1,200.00 96,432.14 118 481.36 718.64 1,200.00 95,713.50 119 477.77 722.23 1,200.00 94,991.27 120 474.16 725.84 1,200.00 94,265.44 121 470.54 729.46 1,200.00 93,535.98 122 466.90 733.10 1,200.00 92,802.88 123 463.24 736.76 1,200.00 92,066.12 124 459.56 740.44 1,200.00 91,325.68 125 455.87 744.13 1,200.00 90,581.55 126 452.15 747.85 1,200.00 89,833.70 127 448.42 751.58 1,200.00 89,082.12 128 444.67 755.33 1,200.00 88,326.79 129 440.90 759.10 1,200.00 87,567.69 130 437.11 762.89 1,200.00 86,804.80 131 433.30 766.70 1,200.00 86,038.10 132 429.47 770.53 1,200.00 85,267.57 133 425.63 774.37 1,200.00 84,493.20 134 421.76 778.24 1,200.00 83,714.96 135 417.88 782.12 1,200.00 82,932.84 136 413.97 786.03 1,200.00 82,146.81 137 410.05 789.95 1,200.00 81,356.86 138 406.11 793.89 1,200.00 80,562.97 139 402.14 797.86 1,200.00 79,765.11 140 398.16 801.84 1,200.00 78,963.27 141 394.16 805.84 1,200.00 78,157.43 142 390.14 809.86 1,200.00 77,347.57 143 386.09 813.91 1,200.00 76,533.66 144 382.03 817.97 1,200.00 75,715.69 145 377.95 822.05 1,200.00 74,893.64 146 373.84 826.16 1,200.00 74,067.48 147 369.72 830.28 1,200.00 73,237.20 148 365.58 834.42 1,200.00 72,402.78 149 361.41 838.59 1,200.00 71,564.19 150 357.22 842.78 1,200.00 70,721.41 151 353.02 846.98 1,200.00 69,874.43 152 348.79 851.21 1,200.00 69,023.22 153 344.54 855.46 1,200.00 68,167.76 154 340.27 859.73 1,200.00 67,308.03 155 335.98 864.02 1,200.00 66,444.01 156 331.67 868.33 1,200.00 65,575.68 157 327.33 872.67 1,200.00 64,703.01 158 322.98 877.02 1,200.00 63,825.98 159 318.60 881.40 1,200.00 62,944.58 160 314.20 885.80 1,200.00 62,058.78 161 309.78 890.22 1,200.00 61,168.56 162 305.33 894.67 1,200.00 60,273.89 163 300.87 899.13 1,200.00 59,374.76 164 296.38 903.62 1,200.00 58,471.14 165 291.87 908.13 1,200.00 57,563.01 166 287.34 912.66 1,200.00 56,650.34 167 282.78 917.22 1,200.00 55,733.12 168 278.20 921.80 1,200.00 54,811.32 169 273.60 926.40 1,200.00 53,884.92 170 268.98 931.02 1,200.00 52,953.90 171 264.33 935.67 1,200.00 52,018.23 172 259.66 940.34 1,200.00 51,077.88 173 254.96 945.04 1,200.00 50,132.85 174 250.25 949.75 1,200.00 49,183.09 175 245.51 954.49 1,200.00 48,228.60 176 240.74 959.26 1,200.00 47,269.34 177 235.95 964.05 1,200.00 46,305.29 178 231.14 968.86 1,200.00 45,336.43 179 226.30 973.70 1,200.00 44,362.74 180 221.44 978.56 1,200.00 43,384.18 181 216.56 983.44 1,200.00 42,400.74 182 211.65 988.35 1,200.00 41,412.39 183 206.72 993.28 1,200.00 40,419.11 184 201.76 998.24 1,200.00 39,420.87 185 196.78 1,003.22 1,200.00 38,417.64 186 191.77 1,008.23 1,200.00 37,409.41 187 186.74 1,013.26 1,200.00 36,396.15 188 181.68 1,018.32 1,200.00 35,377.82 189 176.59 1,023.41 1,200.00 34,354.42 190 171.49 1,028.51 1,200.00 33,325.90 191 166.35 1,033.65 1,200.00 32,292.26 192 161.19 1,038.81 1,200.00 31,253.45 193 156.01 1,043.99 1,200.00 30,209.45 194 150.80 1,049.20 1,200.00 29,160.25 195 145.56 1,054.44 1,200.00 28,105.81 196 140.29 1,059.71 1,200.00 27,046.10 197 135.01 1,064.99 1,200.00 25,981.11 198 129.69 1,070.31 1,200.00 24,910.80 199 124.35 1,075.65 1,200.00 23,835.14 200 118.98 1,081.02 1,200.00 22,754.12 201 113.58 1,086.42 1,200.00 21,667.70 202 108.16 1,091.84 1,200.00 20,575.86 203 102.71 1,097.29 1,200.00 19,478.57 204 97.23 1,102.77 1,200.00 18,375.80 205 91.73 1,108.27 1,200.00 17,267.52 206 86.19 1,113.81 1,200.00 16,153.72 207 80.63 1,119.37 1,200.00 15,034.35 208 75.05 1,124.95 1,200.00 13,909.40 209 69.43 1,130.57 1,200.00 12,778.83 210 63.79 1,136.21 1,200.00 11,642.62 211 58.12 1,141.88 1,200.00 10,500.73 212 52.42 1,147.58 1,200.00 9,353.15 213 46.69 1,153.31 1,200.00 8,199.84 214 40.93 1,159.07 1,200.00 7,040.77 215 35.15 1,164.85 1,200.00 5,875.91 216 29.33 1,170.67 1,200.00 4,705.24 217 23.49 1,176.51 1,200.00 3,528.73 218 17.61 1,182.39 1,200.00 2,346.34 219 11.71 1,188.29 1,200.00 1,158.06 220 5.78 1,158.06 1,163.84 (0.00) --------------- With the extra payment: 1 798.67 601.33 1,400.00 159,398.67 2 795.67 604.33 1,400.00 158,794.33 3 792.65 607.35 1,400.00 158,186.98 4 789.62 610.38 1,400.00 157,576.60 5 786.57 613.43 1,400.00 156,963.17 6 783.51 616.49 1,400.00 156,346.67 7 780.43 619.57 1,400.00 155,727.10 8 777.34 622.66 1,400.00 155,104.44 9 774.23 625.77 1,400.00 154,478.67 10 771.11 628.89 1,400.00 153,849.78 11 767.97 632.03 1,400.00 153,217.75 12 764.81 635.19 1,400.00 152,582.56 13 761.64 638.36 1,400.00 151,944.20 14 758.45 641.55 1,400.00 151,302.65 15 755.25 644.75 1,400.00 150,657.91 16 752.03 647.97 1,400.00 150,009.94 17 748.80 651.20 1,400.00 149,358.74 18 745.55 654.45 1,400.00 148,704.29 19 742.28 657.72 1,400.00 148,046.57 20 739.00 661.00 1,400.00 147,385.57 21 735.70 664.30 1,400.00 146,721.27 22 732.38 667.62 1,400.00 146,053.65 23 729.05 670.95 1,400.00 145,382.70 24 725.70 674.30 1,400.00 144,708.41 25 722.34 677.66 1,400.00 144,030.74 26 718.95 681.05 1,400.00 143,349.70 27 715.55 684.45 1,400.00 142,665.25 28 712.14 687.86 1,400.00 141,977.39 29 708.70 691.30 1,400.00 141,286.09 30 705.25 694.75 1,400.00 140,591.34 31 701.79 698.21 1,400.00 139,893.13 32 698.30 701.70 1,400.00 139,191.43 33 694.80 705.20 1,400.00 138,486.23 34 691.28 708.72 1,400.00 137,777.50 35 687.74 712.26 1,400.00 137,065.24 36 684.18 715.82 1,400.00 136,349.43 37 680.61 719.39 1,400.00 135,630.04 38 677.02 722.98 1,400.00 134,907.06 39 673.41 726.59 1,400.00 134,180.47 40 669.78 730.22 1,400.00 133,450.25 41 666.14 733.86 1,400.00 132,716.39 42 662.48 737.52 1,400.00 131,978.87 43 658.79 741.21 1,400.00 131,237.66 44 655.09 744.91 1,400.00 130,492.76 45 651.38 748.62 1,400.00 129,744.13 46 647.64 752.36 1,400.00 128,991.77 47 643.88 756.12 1,400.00 128,235.66 48 640.11 759.89 1,400.00 127,475.77 49 636.32 763.68 1,400.00 126,712.08 50 632.50 767.50 1,400.00 125,944.59 51 628.67 771.33 1,400.00 125,173.26 52 624.82 775.18 1,400.00 124,398.08 53 620.95 779.05 1,400.00 123,619.04 54 617.07 782.93 1,400.00 122,836.10 55 613.16 786.84 1,400.00 122,049.26 56 609.23 790.77 1,400.00 121,258.49 57 605.28 794.72 1,400.00 120,463.77 58 601.31 798.69 1,400.00 119,665.09 59 597.33 802.67 1,400.00 118,862.41 60 593.32 806.68 1,400.00 118,055.74 61 589.29 810.71 1,400.00 117,245.03 62 585.25 814.75 1,400.00 116,430.28 63 581.18 818.82 1,400.00 115,611.46 64 577.09 822.91 1,400.00 114,788.55 65 572.99 827.01 1,400.00 113,961.54 66 568.86 831.14 1,400.00 113,130.40 67 564.71 835.29 1,400.00 112,295.11 68 560.54 839.46 1,400.00 111,455.65 69 556.35 843.65 1,400.00 110,612.00 70 552.14 847.86 1,400.00 109,764.13 71 547.91 852.09 1,400.00 108,912.04 72 543.65 856.35 1,400.00 108,055.69 73 539.38 860.62 1,400.00 107,195.07 74 535.08 864.92 1,400.00 106,330.15 75 530.76 869.24 1,400.00 105,460.92 76 526.43 873.57 1,400.00 104,587.34 77 522.07 877.93 1,400.00 103,709.41 78 517.68 882.32 1,400.00 102,827.09 79 513.28 886.72 1,400.00 101,940.37 80 508.85 891.15 1,400.00 101,049.22 81 504.40 895.60 1,400.00 100,153.63 82 499.93 900.07 1,400.00 99,253.56 83 495.44 904.56 1,400.00 98,349.00 84 490.93 909.07 1,400.00 97,439.93 85 486.39 913.61 1,400.00 96,526.31 86 481.83 918.17 1,400.00 95,608.14 87 477.24 922.76 1,400.00 94,685.38 88 472.64 927.36 1,400.00 93,758.02 89 468.01 931.99 1,400.00 92,826.03 90 463.36 936.64 1,400.00 91,889.39 91 458.68 941.32 1,400.00 90,948.07 92 453.98 946.02 1,400.00 90,002.05 93 449.26 950.74 1,400.00 89,051.31 94 444.51 955.49 1,400.00 88,095.83 95 439.74 960.26 1,400.00 87,135.57 96 434.95 965.05 1,400.00 86,170.52 97 430.13 969.87 1,400.00 85,200.66 98 425.29 974.71 1,400.00 84,225.95 99 420.43 979.57 1,400.00 83,246.38 100 415.54 984.46 1,400.00 82,261.92 101 410.62 989.38 1,400.00 81,272.54 102 405.69 994.31 1,400.00 80,278.23 103 400.72 999.28 1,400.00 79,278.95 104 395.73 1,004.27 1,400.00 78,274.68 105 390.72 1,009.28 1,400.00 77,265.40 106 385.68 1,014.32 1,400.00 76,251.09 107 380.62 1,019.38 1,400.00 75,231.71 108 375.53 1,024.47 1,400.00 74,207.24 109 370.42 1,029.58 1,400.00 73,177.66 110 365.28 1,034.72 1,400.00 72,142.93 111 360.11 1,039.89 1,400.00 71,103.05 112 354.92 1,045.08 1,400.00 70,057.97 113 349.71 1,050.29 1,400.00 69,007.68 114 344.46 1,055.54 1,400.00 67,952.14 115 339.19 1,060.81 1,400.00 66,891.33 116 333.90 1,066.10 1,400.00 65,825.23 117 328.58 1,071.42 1,400.00 64,753.81 118 323.23 1,076.77 1,400.00 63,677.04 119 317.85 1,082.15 1,400.00 62,594.90 120 312.45 1,087.55 1,400.00 61,507.35 121 307.02 892.98 1,200.00 60,614.37 122 302.57 897.43 1,200.00 59,716.94 123 298.09 901.91 1,200.00 58,815.03 124 293.59 906.41 1,200.00 57,908.61 125 289.06 910.94 1,200.00 56,997.67 126 284.51 915.49 1,200.00 56,082.19 127 279.94 920.06 1,200.00 55,162.13 128 275.35 924.65 1,200.00 54,237.48 129 270.74 929.26 1,200.00 53,308.22 130 266.10 933.90 1,200.00 52,374.31 131 261.44 938.56 1,200.00 51,435.75 132 256.75 943.25 1,200.00 50,492.50 133 252.04 947.96 1,200.00 49,544.54 134 247.31 952.69 1,200.00 48,591.85 135 242.55 957.45 1,200.00 47,634.40 136 237.78 962.22 1,200.00 46,672.18 137 232.97 967.03 1,200.00 45,705.15 138 228.14 971.86 1,200.00 44,733.30 139 223.29 976.71 1,200.00 43,756.59 140 218.42 981.58 1,200.00 42,775.01 141 213.52 986.48 1,200.00 41,788.53 142 208.59 991.41 1,200.00 40,797.12 143 203.65 996.35 1,200.00 39,800.77 144 198.67 1,001.33 1,200.00 38,799.44 145 193.67 1,006.33 1,200.00 37,793.11 146 188.65 1,011.35 1,200.00 36,781.76 147 183.60 1,016.40 1,200.00 35,765.36 148 178.53 1,021.47 1,200.00 34,743.89 149 173.43 1,026.57 1,200.00 33,717.32 150 168.31 1,031.69 1,200.00 32,685.63 151 163.16 1,036.84 1,200.00 31,648.78 152 157.98 1,042.02 1,200.00 30,606.76 153 152.78 1,047.22 1,200.00 29,559.54 154 147.55 1,052.45 1,200.00 28,507.10 155 142.30 1,057.70 1,200.00 27,449.39 156 137.02 1,062.98 1,200.00 26,386.41 157 131.71 1,068.29 1,200.00 25,318.12 158 126.38 1,073.62 1,200.00 24,244.50 159 121.02 1,078.98 1,200.00 23,165.52 160 115.63 1,084.37 1,200.00 22,081.16 161 110.22 1,089.78 1,200.00 20,991.38 162 104.78 1,095.22 1,200.00 19,896.16 163 99.32 1,100.68 1,200.00 18,795.48 164 93.82 1,106.18 1,200.00 17,689.30 165 88.30 1,111.70 1,200.00 16,577.60 166 82.75 1,117.25 1,200.00 15,460.35 167 77.17 1,122.83 1,200.00 14,337.52 168 71.57 1,128.43 1,200.00 13,209.09 169 65.94 1,134.06 1,200.00 12,075.02 170 60.27 1,139.73 1,200.00 10,935.30 171 54.59 1,145.41 1,200.00 9,789.88 172 48.87 1,151.13 1,200.00 8,638.75 173 43.12 1,156.88 1,200.00 7,481.87 174 37.35 1,162.65 1,200.00 6,319.22 175 31.54 1,168.46 1,200.00 5,150.76 176 25.71 1,174.29 1,200.00 3,976.47 177 19.85 1,180.15 1,200.00 2,796.32 178 13.96 1,186.04 1,200.00 1,610.28 179 8.04 1,191.96 1,200.00 418.32 180 2.09 418.32 420.41 (0.00) Thanks again for bringing us you question. Google Answers Researcher Richard-ga```
 gisgirl-ga rated this answer: and gave an additional tip of: \$5.00 ```The answer was very clear and the spreadsheet came thru perfectly. The alternative suggestion is very well taken. I did not ask the question perfectly, but I still can see the situation much more clearly. It was very important to have this answer this weekend, so the timing is perfect for us to have time to discuss what to do. Please accept \$5 tip.```

 ```One consequence of paying more on your mortgage is that that money will no longer be available to you should you need it for an emergency. An alternative would be to place the extra \$200 in the bank or a realitively risk free investment. It would be available for any emergency that arose, including the mortgage.```
 ```gisgirl - - thank you for the kind words and the tip! richard-ga```
 ```One more thing for you to consider, mortgage interest payments on your primary residence are a tax deduction. If you pay extra principal, you will reduce the interest and thereby reduce the tax deduction. You should only do this if you have no other debts (credit cards, student loans, etc) since they should be paid off first as they have no tax benefit.```