Hi, that home is really yours!   Now you may be wondering, "Does it make sense to pay off a loan at an accelerated rate?”

Yes... and Maybe!  Every situation is different. Say you have a fixed loan with a 30 year period.  You may save many thousands of dollars in interest!  However, the advice of everyone, family, friends, etc., can be confusing at least!    So WHAT should you do?

First, we normally advise most people avoid “Exotic” loans.  They are NOT for everyone.   They are for those that can avoid / deal with economic pitfalls.   We know that lenders LOVE to make money!  And... Do they really look far down the road, (in your shoes)?  So, can you “play” with your mortgage payment and be flexible?   Yes!  For example, you can easily write a separate check to the lender marked for "added principle" payment. Always check the statement to see that they credited it properly.  Then, you wonder,...  “How does that actually work?”   Well...now you can see how. Right on your computer screen!  (This requires a program like Excel/Star Office, etc.  We can NOT teach you how it all works...)

The actual dollars calculated may be off a few dollars/cents but at least, you will see the process…

The fully functional spreadsheet Payments-n-Appr.xls  is virus free if downloaded from us! (Please read all steps BELOW...)

(If you find a suggestion/problem, please do email us!)  There is a graph on Sheet 2, which is mirrored onto Sheet 1(in small scale), so you immediately can “see” the effects of interest / term / (extra) payments, etc.! 

Notes... Re: the embeded graphs...

The heavy Black Line shows the 360 Payment Intervals.

The chart shows 2 loans, with the First Loan for ~115K at ~6% for 30 years.  (Blue Line)

The Second Loan is for Approx 28K and 7% for 15 years.  (This loan “flat-lines” mid-chart since its PAID OFF in 15 years! - Red Line)

We can NOT support every type of loan, nor teach Excel…  please limit questions to those we can help with.  (Please continue reading...)

Further, we recommend that use Excel 2000 or Star Office.  If you need an earlier version in Excel, send an email request to: bill@quigleyteam.com

            Thanks!

1   After you agree to the terms of use (link at bottom)... to have minimal problems: First, copy the file to your hard drive and

     SAVE it in a “Safe” place.  Then Copy it over to another “working” copy…  After opening this file follow step #2 on!!

2   Enter numbers (use your numbers) ONLY in the GREEN Boxes (step #s 2 thru 14)!  Yellow boxes have formulas in them 

     leave them alone, unless you really know Excel...  (To learn how this all works, please take an advanced class on Excel.)

3   Enter the Original “Sales Price” in cell “C4”                                              >>>            $    142,000.00 

4   Enter the First loan “Years” in cell “C5”                                                   >>>                     30         _

5   Enter the percent of funding in “C6” (up to 99)                                         >>>                     80         _

     (If you fund a 90% loan and plan to put up 10% down there will be no 2^nd Loan shown.)

6   Enter the First Loan’s “Interest” in cell “C7”                                            >>>                    6.25        _

7   If  “Closing Costs” financed into Loan Put a “1”in cell “C8”                    >>>                       1          _ 

8   Enter the “Closing Costs” in cell “C9”                                                       >>>            $    4,000.00   _

9   Enter “Earnest Money” in cell “C12”                                                        >>>            $    14000.00   _

10 Enter the “Down Payment %” in cell “C14” (If "0," then notice that a     >>>                       0          _

     “%”  automatically appears in the yellow box # “C17” ex:        20      this

     is the 2^nd loan’s percent of home equity.)

11  Enter “2^nd Loan Interest’ in cell “C18”                                                      >>>                     6.750     _

12  Then finish up by Entering:  Taxes in “C20,”, Insurance in “C21,” HOA in “C22,”

       and Misc. in “C23.”    These figures need NEVER again be touched, unless you are doing an "if-or-else" study!

13  Now here is where the equity increase / savings / interest "tweaking"  begins: …   If you enter a dollar amount in any given

      place starting at either G34 thru G393 for the Primary Loan, or L34 thru L393, for the 2^nd loan you will automatically see

      a reduction in the total interest(s) paid and the term lengths! (See cells C28 thru... S28)

14 Then there May be Positive appreciation in value. Appreciation may also be Negative OR Zero in value!  All Calculations   

      are in Constant Dollars!   Every year one must approximate this value. Enter this in cells "R45, R57, etc. (Over TIME,

      it is usually positive and accrues!)  (Notice that the "Appreciation" Graph may show a "dip" this is NEGATIVE!!!

      ( Think     Long  -  Term    !!!)   To get to the excel Spreadsheet click on the > Buyer_Agreement.htm <