How does an Amortization Schedule work with prepaying home loan principal?

I printed out an amortization schedule for my $57,000 dollar 30 yr. home loan. If I add up the first 10 payments of principal ONLY it comes to $467.00. If I send the bank a check for this amount for principal have I just reduced my loan by 10 payments? Would my first regular monthly payment then be the principal and interest shown on payment #11?

I'm just trying to figure out how to keep track of my prepayment on principal amounts for my own records. Thanks

How does an Amortization Schedule work with prepaying home loan principal?

Yes, you would have reduced the term of your loan by 10 payments. the payments never change.

How does an Amortization Schedule work with prepaying home loan principal?

Not Quite.

At the beginning of the loan, the majority of the monthly payment that you make is interest. By adding additional principal to the payment (best done via separate check for documentation purposes), you reduce the principal balance by that amount. The lender will then charge you interest on the reduced principal balance, so your next payment will pay additional principal and less interest. By regularly doing this, you can dramatically reduce your loan term and overall interest charges.

The exact balance in you write-up may vary from this due to compounding and other factors. You will be close, however.

Be aware, some lenders have prepayment penalties that are equal to or outweigh the benefits of doing this. Read you contract carefully.

How does an Amortization Schedule work with prepaying home loan principal?

dont know thanks for the 2pt

How does an Amortization Schedule work with prepaying home loan principal?

yes

How does an Amortization Schedule work with prepaying home loan principal?

amortization works yearly based divided into number of months repayments, minus the repaid valur yearly during that year, and at the year end closing, the balance of loaned value in net being calculated again against the interest rate compares to the base lending rates and the interest then being incorporated back into the net value during the year end, which then becomes the principal for the coming year based on per annum rate on monthly rest.

Can you put these back into financial calculator whereby just use the Payment value, number of years, and interest rates.

How does an Amortization Schedule work with prepaying home loan principal?

An amortization schedule shows you how much of each scheduled payment will be used for interest (the lion's share early on) and how much will go to reducing principal (initially just scraps).

if you add up the %26quot;principal only%26quot; portions of each of the first 10 payments, this will not equate to covering the first 10 payments in full...it will only reduce the base on which your interest is figured...remember ...

I= P*R*T

Interest equals Principal times Rate timesTime