UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: jacqueg One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308362  
Subject: Fantasies in Excel... Date: 8/15/2002 4:12 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
I recently got a home equity loan, into which I rolled my high-interest credit cards, and some cash for buying a new-to-me car. I need to make sure I don't run up the cc's again, so I am taking a solemn oath to not make any major purchases (other than the aforementioned car, which my mechanic assures me will be a necessity soon) until my principal is back down to what my outstanding mortgage was - 28,000 in round numbers. And I need to get it back down there ASAP.

So I set up an amortization schedule in Excel, and started playing around with terms. This is a great motivator!

My HEL is set up so that I begin payments of $475/mo on 9/5/02. Last payment is 8/5/12, and I pay a total of $16,977 in interest.

If I prepay $500 now, then continue with $475/mo beginning 9/5/02, my last payment will be 6/5/12, and I will pay a total of $16,412 in interest.

If I prepay $500 now, then continue with $500/mo beginning 9/5/02, my last payment will be 9/5/11, and I will pay a total of $15,128 in interest.

If I prepay $500 now, then continue with $250 every two weeks, my last payment will be 8/5/11, and I will pay a total of $14,801 in interest. Under this scenario, I can get back down to $28,000 in just about 2 years!

I can do this.

I haven't figured out what paying $125 a week or $16.50 a day would do, but this is so entertaining, I might! (I could actually pay once a day, my credit union offers online transfers between accounts, including loan accounts.)

Thanks to those on this board who mentioned bimonthly payments, and thanks to ggfan (I think) who mentioned paying her cc company online anytime she had an extra $20. Very smart.


Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement