Amortization Schedule Extra Payments Excel
Introduction
As a homeowner, paying off your mortgage is a significant financial goal. The faster you can pay off your mortgage, the more money you can save in interest payments over the life of the loan. One way to do this is by making extra payments towards your mortgage. However, keeping track of your mortgage payments can be a daunting task, especially if you are making extra payments. This is where an amortization schedule comes in.
What is an Amortization Schedule?
An amortization schedule is a table that shows the breakdown of each mortgage payment. It details the amount of principal and interest that is paid with each payment. An amortization schedule can also show the remaining balance of the mortgage after each payment is made.
Amortization Schedule Extra Payments Excel
Excel is a powerful tool that can help you create an amortization schedule with extra payments. By using Excel, you can easily see the impact of making extra payments towards your mortgage.
List of Events or Competition of “Amortization Schedule Extra Payments Excel”
There are various events and competitions related to Amortization Schedule Extra Payments Excel. For instance, there are online competitions where participants are required to create an excel sheet that calculates the amortization schedule with extra payments. The winner is usually the person who creates the most accurate and efficient excel sheet.
Detail Schedule Guide for “Amortization Schedule Extra Payments Excel”
To create an amortization schedule with extra payments in Excel, follow these steps: 1. Open a new Excel spreadsheet and create a table with the following columns: Payment Number, Payment Date, Payment Amount, Principal Paid, Interest Paid, Extra Payment, Total Payment, and Remaining Balance. 2. In the first row of the Payment Number column, enter “1”. In the Payment Date column, enter the date of your first mortgage payment. 3. In the Payment Amount column, enter your regular mortgage payment amount. 4. In the Principal Paid column, use the following formula: =PPMT(rate/12, payment number, total number of payments, loan amount). Replace rate with your mortgage interest rate, payment number with the current row number, total number of payments with the total number of mortgage payments, and loan amount with your mortgage loan amount. 5. In the Interest Paid column, use the following formula: =IPMT(rate/12,payment number, total number of payments, loan amount). Replace rate with your mortgage interest rate, payment number with the current row number, total number of payments with the total number of mortgage payments, and loan amount with your mortgage loan amount. 6. In the Extra Payment column, enter the amount of extra payment you want to make each month. 7. In the Total Payment column, use the following formula: =Payment(rate/12, total number of payments, loan amount+ extra payment). Replace rate with your mortgage interest rate, total number of payments with the total number of mortgage payments, loan amount with your mortgage loan amount, and extra payment with the amount of extra payment you want to make each month. 8. In the Remaining Balance column, use the following formula: =loan amount-principal paid. This will calculate the remaining balance after each payment is made. 9. Copy and paste the formulas in rows 2 to the remaining rows in the table. 10. Save the spreadsheet and use it to keep track of your mortgage payments.
Schedule Table for “Amortization Schedule Extra Payments Excel”
Here is an example schedule table for Amortization Schedule Extra Payments Excel:
| Payment Number | Payment Date | Payment Amount | Principal Paid | Interest Paid | Extra Payment | Total Payment | Remaining Balance |
|---|---|---|---|---|---|---|---|
| 1 | 01/01/2023 | $1,000.00 | $200.00 | $800.00 | $0.00 | $1,000.00 | $99,800.00 |
| 2 | 02/01/2023 | $1,000.00 | $203.35 | $796.65 | $0.00 | $1,000.00 | $99,596.65 |
| 3 | 03/01/2023 | $1,000.00 | $206.73 | $793.27 | $100.00 | $1,100.00 | $99,386.92 |
| 4 | 04/01/2023 | $1,000.00 | $210.13 | $789.87 | $100.00 | $1,100.00 | $99,176.78 |
| 5 | 05/01/2023 | $1,000.00 | $213.54 | $786.46 | $100.00 | $1,100.00 | $98,966.24 |
| 6 | 06/01/2023 | $1,000.00 | $216.98 | $783.02 | $100.00 | $1,100.00 | $98,755.26 |
Question and Answer
Q: Can I make extra payments towards my mortgage?
A: Yes, you can make extra payments towards your mortgage. This can help you pay off your mortgage faster and save money in interest payments.
Q: How do I calculate the impact of making extra payments towards my mortgage?
A: You can use an amortization schedule to calculate the impact of making extra payments towards your mortgage. This will show you how much money you can save in interest payments and how much faster you can pay off your mortgage.
FAQs
Q: What is a mortgage?
A: A mortgage is a loan that is used to purchase a property. The property is used as collateral for the loan.
Q: What is an interest rate?
A: An interest rate is the amount of money that is charged by a lender for borrowing money. This is usually expressed as a percentage of the loan amount.
Q: How do I make extra payments towards my mortgage?
A: You can make extra payments towards your mortgage by contacting your lender and asking them to apply the extra payment towards your principal balance. You can also set up automatic payments through your bank to make extra payments each month.
