mortage questions..

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kryptonite5b

kryptonite5b

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-is "equity" the amount of money you have put towards what you owe on your home?


-is there a formula to determine how much of my house will be paid off in a determined amount of time?


i look at my mortgage bill and i cant figure out all the brake downs. my wife and i are trying to figure out how much we will have for our next down payment(estamating) when we decide to move and buy a new house. i don't know how they figure in the interest and how much of our mortgage payment goes towards the amount we owe on our house.


so here it is:


interest rate-5.45%(fixed)


down payment-$10,000.00


our house was- $79,000.00


mortgage is- $502.00 per month


we have owned the house for 2 years and we plan on selling in 2 years. how do i figure out how much will have gone towards our house?


thanx for any help.
 
kryptonite said:
-is "equity" the amount of money you have put towards what you owe on your home?
-is there a formula to determine how much of my house will be paid off in a determined amount of time?


i look at my mortgage bill and i cant figure out all the brake downs. my wife and i are trying to figure out how much we will have for our next down payment(estamating) when we decide to move and buy a new house. i don't know how they figure in the interest and how much of our mortgage payment goes towards the amount we owe on our house.


so here it is:


interest rate-5.45%(fixed)


down payment-$10,000.00


our house was- $79,000.00


mortgage is- $502.00 per month


we have owned the house for 2 years and we plan on selling in 2 years. how do i figure out how much will have gone towards our house?


thanx for any help.
Click to expand...
Equity is a factor of assets - liabilities. So if for example you own a house worth $350,000.00 and owe $300,000.00 to the bank, you will have $50,000.00 in equity.


There are websites that have mortgage calculators, but you have not put in your numbers what terms your mortgage has, such as the current term for your rate and the amortization (total length of the mortgage; for eg. 25 years) plus you also need your payment schedule; (Monthly, weekly, bi-weekly, bi-monthly)


You need:


1. Amount borrowed ($69,000)


2. Interest Rate (5.45)


3. Amortization ( for eg. 25 years)


4. Payment schedule (for eg. monthly)


Plug these numbers into a mortgage calculator and it will give you a payment breakdown. Also, if you have online banking, the bank will have a monthly statement of principal and interest paid of your payment. This amount will be very, very high in interest for the first number of years, then each month the difference will change by a few dollars until you are paying more principal than interest.


If you owe $70K for 25 years, my best guess would be you would likely pay off only around 6 to 7 thousand of principal for the first 4 years.
 
An agent just sold my house and they got 6%! So don't forget to factor that in if youre having someone sell it for you. Find one of those mortgage calculator that shows you each month for the term of the loan and will factor in extra payments towards the principal. If you have the chance you can turn a 30 yr into 15-20 and the bank gets way less interest.
 
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