Mortgage Prepayment / Loan Druid

[Elizabeth Dodd]

On Tuesday 23 May 2006 07:53, you wrote:

>
> I'm not sure I understand what you are saying. My 30-year mortgage started
> in August 2004. I've been paying every month, except that one month I
> accidentally paid some extra and now the druid amounts don't match the
> actual statement from the bank.
>
> Should I just do a 340 month mortgage (360 months minus the time past since
> August 2004) with the current principal? Or are you suggesting something
> else might be necessary?
>
> Adam
if you are paying the same amount each month as before then the result will 
not be 340 payments. Exactly what the difference is depends on your contract.
Mine would drastically reduce the number of payments because interest is 
always calculated on the outstanding balance.
I would assume that you start with the balance from last statement and 
calculate using same repayment each month. The calculator should then give 
you the number of months (payments) to go.
Liz


-- 
BOFH excuse #357:

I'd love to help you -- it's just that the Boss won't let me near the 
computer.