Hi Cathrugg, I have searched high and low on the internet without being able to find a spreadsheet that allows for manipulation of the principal payment dates (they all make it payable with the regular due date only). This is because any such calculator would be futile. American mortgage loan payments are booked once a month regardless when the payments are sent in (as long as they arrive prior to the late-cutoff deadline.) Only revolving credit (including HELOCs) have their payments applied toward interest-accruing balances daily (again, in the U.S.) Does anyone have or know where I can find an amortization schedule for a mortgage loan that allows me to input random principal payments on dates different from the payment due date? If you'd like to see the effect of differing additional principal payments month-to-month (as opposed to a daily basis,) I can help you with THAT... just email me directly and I'll bounce one right back to you. For example, if the loan payment is due on the 1st of every month and is paid by automatic payment, then I decide to pay an extra $250 on the 7th of this month and then another $750 on the 25th of next month, is there a way to calculate the interest I am saving? SO... if you are *REALLY* committed to doing this... the way to do it is to "pay the extra" into an interest-bearing depository account (checking, savings, or other,) and figure the compounding POSITIVE growth of your money... and then subtract it against the negative interest burden you are carrying on your mortgage. Make sense? Hope that's helpful (and you are completely welcome for any way I could have helped before... your appreciation is appreciated!) Cheers, Dave Donhoff Leverage Planner

"I don't see anything on google about how to deal with the extra days in a month beyond the due date, or with question of balance principal being prorated." The balance is not "pro rated" it is amortized. Each payment goes towards interest for the preceding month, and the remaining portion of the payment goes to reduce the principal. When calculated correctly the payments will result in the principal reaching zero (with some rounding errors) by the last payment. The last payment is often slightly different (often lower) to correct for the rounding errors in all the previous payments. Daily interest is computed by determining what the principle remaining is and dividing by the number of days in the payoff month. This is the pro-rated per day interest expense.

"This may be common knowledge, but I just found this out and it has been bugging me ever since. I'm paying $500/month extra principal payments on my mortgage. If I paid the $6000/year once each year, it would have saved me 5 months at the end of my mortgage." If all you are concerned with is paying off the mortgage faster, paying $500 a month will be faster than saving up till the end of the year and making a single payment of $6000. Interest is computed EVERY MONTH on the balance of the mortgage. Each payment is than applied to the interest, and the remainder goes to the principal. If you pay $500 extra, the next months balance will be $500 less, resulting in more money going to principal the next month. One simple way to envision this is to look at an amortization schedule. If you made an extra principal payment of the NEXT months principal, you would 'skip' ahead one month on the amortization table, and shorten the loan by 1 month. If you make a $500 payment to principal you can add up the monthly principal portions on the amortization table until you get to $500 (or as close as you can without going over). This will be the number of months the mortgage is shortened by. It is easy in the first years to shorten the mortgage, but gets harder in the latter years since the portion f the payment allocated to principal is rising as the balance decreases.

Closing costs come along with a mortgage or more accurately I suppose a loan? There are basically two types of closing costs. Those related to the purchase (aka transaction) and those related to borrowing any money to facilitate the transaction. Those related to the transaction are charged whether you are taking out a loan or not. Examples include title insurance, property taxes, transfer taxes, attorneys' fees, agents'commissions, certain other types of insurance. Some of these charges will be a fixed fee, others based on a percentage of the sales price. Some of these fees are charged by the title company and some by the state/local authority. The second set of closing costs are those related to taking out a loan. The appraisal fee (which is usually a fixed charge - say $350)and the origination fees (aka points - which is based on the amount of the loan. Each point is 1% of the loan amount). Seems like a lot of the closing costs come from the title company - and you have to do that anyway? I.e. why are loan closing costs a big deal? Most people finance their home purchases by borrowing the money. It costs money to borrow money. The largest cost of borrowing money is, of course, interest determined by the interest rate. The other big cost of borrowing is the origination fee, aka points. It's a big deal because it is a one-time charge based on the amount borrowed. So, it's variable. A point is 1% of the loan amount. If I'm buying a $500,000 house, borrowing 100%, and paying 1 point, it's going to cost me $5000 (just drop the last two zeroes on the loan amount.)If I put down 50% and finance $250,000, the point will cost me $2500. Some borrowers find it advantageous to "buy down" their interest rate. They might pay 2 points or more to purchase a lower interest rate over the life of the loan. Other borrowers might pay zero points and buy a slightly higher interest rate. Lenders will often tie interest rates and points together as a marketing tool to stand out against their competition. So, depending on the amount financed and the number of points charged, this particular cost of borrowing money can make or break the loan for a potential buyer. And do mortgage related closing costs go up with the amount of the loan? How why? Some do, some don't - see above. Why? 'Cuz. (LOL) Then depending on the last, only buying a house full price/cash is an advantage? A hefty downpayment and smaller loan gets you (no)where? Not necessarily. Sadly, Mary, this is where the math becomes really important. But a good mortgage calculator with a full amortization schedule can be a big help. It will calculate not only the monthly payment but the total interest cost of the loan (prepare for heart failure) and enable you to model different interest rate, loan amount, and payment scenarios. Stop thinking of it as math and start thinking of it as money...playing with money. So when people talk closing costs - are we talking two types? The type you pay no matter what - say you bought full purchase price - or even inherited a house. And the ones that come along with a loan? Which are loan ones and which are not? Yup...see above. Mary, the best way to understand the total transaction costs of a real estate purchase is to take out your settlement statement from you recent home sale. This is called the HUD-1. Then go to HUD's website and follow the line-by-line explanation of what each settlement line means. You'll see right away that the form is divided into loan costs and other costs. Doing this is akin to doing your taxes by hand. Despite the miracle of tax software, you will never understand our tax system better (and how it applies to you) than after you've done your taxes with paper, pencil, and a good tax manual. Something, each taxpayer should do at least ONCE in their lifetime. Same goes for the HUD-1. It's work but it's good work. Hope that helps. The concepts, guidelines, and rules-of-thumb are important but no piece of generic advice will ever replace working the numbers specific to YOUR situation, your financial needs, your psychology, and your future situation. Mary, I know how much you want to buy a home versus renting. You love "home" - it's a passion, a hobby, and a lifestyle for you. You also want a secure financial future and you have doubts about how these two fit together right now. I think it's great that you keep asking questions and seeking answers. I read that you had engaged a financial planner. As you review your decisions, you might want to start a new hobby - getting past math anxiety by learning more about consumer finances and financial planning. The math is such a small part of it. It's much more a process of thinking and mindset. You might want to see if your local county or community college offers financial education classes. It's a great way to meet people who have similar interests and it can become downright addictive. Fifteen years ago, I didn't know there was such a thing as a financial calculator...now, I carry one with me all the time. Playing with mortgage scenarios, calculating investment earnings, etc. is a great way to pass time while waiting in lines...sort of like having your own financial game-boy. Good luck!