"Here's a quick breakdown of a 3% and 7% interest rate on a $500k home:
Monthly Payment Difference
At 3% Interest Rate: $2,108.02
At 7% Interest Rate: $3,326.51"
Microsoft Excel has a great formula - the @PMT one
Attached is a simple spreadsheet. Just input the total principal, interest rate and term - in months - up to 360 and it gives you the breakdown for each month of interest being paid versus principal being paid - as well as the total interest that will be paid as well as the total of all payments.
Yes, it's an Excel file but its cootie free - I wrote it!
PW.xlsx (Size: 24.96 KB / Downloads: 0)
ETA: For ANY mortgage for 360 months once the interest rate hits 5.30403987882272%, you will be paying dollar for dollar of principal and interest over the 30-year term - so a 500k mortgage at 5.30403987882272% interest would require you to pay 500k in interest over the 30 years - or "ONE MILLION DOLLARS" in total.
Monthly Payment Difference
At 3% Interest Rate: $2,108.02
At 7% Interest Rate: $3,326.51"
Microsoft Excel has a great formula - the @PMT one
Attached is a simple spreadsheet. Just input the total principal, interest rate and term - in months - up to 360 and it gives you the breakdown for each month of interest being paid versus principal being paid - as well as the total interest that will be paid as well as the total of all payments.
Yes, it's an Excel file but its cootie free - I wrote it!
PW.xlsx (Size: 24.96 KB / Downloads: 0)
ETA: For ANY mortgage for 360 months once the interest rate hits 5.30403987882272%, you will be paying dollar for dollar of principal and interest over the 30-year term - so a 500k mortgage at 5.30403987882272% interest would require you to pay 500k in interest over the 30 years - or "ONE MILLION DOLLARS" in total.