How does mortgage prepayment affect future amortization? I’d like a spreadsheet?
I’m about halfway through a 15-year, fixed-rate mortgage. I have an amortization schedule from when the loan was originated. I would like to see how irregular prepayments to principal affect the amortization going forward. About $ 200 of my monthly payment goes to interest right now, and declines slightly by month. If I pay down the principal by, say, 5 thousand, how much of my future payments will then get divided between principal and interest? A spreadsheet would be great, if anyone has one.
I found this on the website for the mortgage… (Prepayment Fee: For fixed-rate loans, the following prepayment fees apply to any payment made in excess of the fixed payment schedule: 3% of prepaid amount for year 1 & 2, 2% for year 3 & 4, and 1% for year 5 and beyond). so can anyone show an example how it works ?
In addition, if I have certain amount of money, should I go ahead and pay for half of my mortgage ? would it reduce my monthly interest if I do so ?