50.00

[Billy Hills]

Some one told me, if I was going to be a buy and hold person. like the triplexs I have been looking at. If I paid a extra 50.00 a month it would nock years off my loan. I tried several times to figure out the math behind it but I don't see it. I always see math being done here. but I am slow due to learning all the short hand notes. I hope I posted in the right section thanks every one.

[Bill Gulley]

P = principal (reduction)

I = interest

IF= interest factor

Pmt= payment

Bal = remaining principal

I/360= interest factor x P = I

pmt - I = p reduction

bal- p reduction = new bal

repeat for each payment period.

Use a calculator, enter variables to arrive at or solve for the payment, then enter the + 50.00 and then solve for N or the number of payments and divide by 12 and you'll see how many years you'll be paying.

The amount of 50.00 may not knock off significant "years", it depends on the balance and interest rate, but 50 bucks is 600 and change dollars a year reduction of principal as it reduces the interest charged at each payment scheduled so in the first period you'd say that interest factor on the 50 bucks. :)