Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.3 alpha 4/15/85; site cae780.UUCP
Path: utzoo!watmath!clyde!burl!ulysses!allegra!mit-eddie!think!harvard!seismo!lll-crg!lll-lcc!vecpyr!amd!amdcad!cae780!gordon
From: gordon@cae780.UUCP (Brian Gordon)
Newsgroups: net.consumers
Subject: Re: principle only mortgage payments
Message-ID: <1594@cae780.UUCP>
Date: Mon, 18-Nov-85 20:16:11 EST
Article-I.D.: cae780.1594
Posted: Mon Nov 18 20:16:11 1985
Date-Received: Sat, 23-Nov-85 01:46:18 EST
References: <480@mit-bug.UUCP>
Reply-To: gordon@cae780.UUCP (Brian Gordon)
Organization: Tektronix, Inc. (CAE Systems Division), Sunnyvale, CA
Lines: 28

In article <480@mit-bug.UUCP> dove@mit-bug.UUCP (Web Dove) writes:
>I have heard it said that one could make additional "principle only"
>payments if the standard monthly payment was also met.
>
>1) Can anyone verify this?

It varies with the lender, but some form of it is quite common.  There are often
(usually?) limits on how much you can pre-pay in a geven period.

>2) Would one of you mortgage calculators figure out how much would be
>saved if one made a second "principle only" payment each month of say
>1/2 the size of the standard payment?

Well, on a 12% loan on $100,000 for 30 years, you pay it off in the 12th month
of the 30th year, having paid $270,300.53 in interest, and payments were
$1,028.61 per month.

If you up that to $1,542.92 per month, you pay it off in the 9th month of the 
9th year (yes 9 - not 19 or 29), having paid $61,958.03 in interest. 

FROM:   Brian G. Gordon, CAE Systems Division of Tektronix, Inc.
UUCP:   tektronix!teklds!cae780!gordon
	{ihnp4, decvax!decwrl}!amdcad!cae780!gordon 
        {nsc, hplabs, resonex, qubix, leadsv}!cae780!gordon 
USNAIL: 5302 Betsy Ross Drive, Santa Clara, CA  95054
AT&T:   (408)727-1234

Down 69 1/4 pounds and holding ...