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I am hoping someone can help me figure out how long it will take to pay off this home loan.

I refinanced at the end of 2010, and my first payment was on 1/1/2011

My rate is 4.125%, the loan balance currently is 162,121.31, and the house appraised for 205,000. From the first payment I have been paying an extra 160 per month towards principal. This would get my loan paid off close to the 20 year mark. I am though, also paying pmi of 81.21 per month, which will drop of automatically close to the end of the year.

I am hoping someone can help me figure out how quickly I can pay the house off if I allocate the 81.21 towards pricipal once pmi drops off at the end of this year.

I would definitely appreciate the help.

Thanks!

Eta. Sorry, forgot to include payment information:

P&i. 817.36
Extra to P: 160
Pmi: 81.21

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Here's something you can try.

Go to Bankrate's mortgage calculator and put in the terms of your loan. Go to the amortization table and note the principal (A) and months left to pay (B) at the time your PMI drops (this is if you were not making any extra payment).

There is a place there to put in your extra payments. Add the monthly extra payment and note what the real principal would be (C) at the time the PMI drops after making the extra payments.

Put in the principal (A) and the months left to pay (B) (and delete any extra payment) into the mortgage calculator. This should give you a similar monthly payment and amortization table as the original loan. Add the new extra monthly payment ($160 + $81.21) and put the difference between the principal amounts (A - C) as a one-time payment at the start of the "new loan".

Thanks! I will give that a try.

Not as much of an impact as I thought.......only a few months sooner. I may look into refinancing into 15 year mortgage instead of expecting the extra payment to make an impact.

Thanks.

Instead of going through a refinance, just pay the mortgage like you would a 15year. This gives you flexibility, in case you need extra money for that month for some reason. This is, of course, with the caveat that your interest rate doesn't go down significantly...

lotusgardener said:   Instead of going through a refinance, just pay the mortgage like you would a 15year. This gives you flexibility, in case you need extra money for that month for some reason. This is, of course, with the caveat that your interest rate doesn't go down significantly...

That's kind of what I was trying to figure out - if a refinance would be worthwhile. Me paying extra per month and PMI dropping later this year is what was throwing my calculations off for comparison. What you just suggested, of course, would be the simplest/easiest calculation I could make.

Thanks!!!



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