Five years ago, I purchase a house for $171,000.00. The down payment of $35,000.00, which meant the amount of the loan, was $136,000.00. The interest rate was 5.6 percentage fixed.
I check my bank statement and found the following information:
• Escrow payment $232.78,
• Principle and interest payment $751.90
• Total payment $984.68
• Current Loan Balance: $121,259.44
i have met my monthly payments expenses with no left over to speak of, how much more money a month do you need to make in order to pay off my loan in 20 years instead of 25? Would this be reasonable

Question

Five years ago, I purchase a house for $171,000.00.  The down payment of $35,000.00, which meant the amount of the loan, was $136,000.00.  The interest rate was 5.6 percentage fixed.  
I check my bank statement and found the following information:
•	Escrow payment $232.78, 
•	Principle and interest payment $751.90 
•	Total payment $984.68
•	Current Loan Balance: $121,259.44
i have met my monthly payments expenses with no left over to speak of, how much more money a month do you need to make in order to pay off my loan in 20 years instead of 25? Would this be reasonable

anonymous · Answer

lisa, if interest rates are lower than when you asked the loan, which i believe will be the case.

- prepay if your interest rate is fixed
- don't prepay if the interest rate of your mortgage is lower
bk the opportunity cost of that money is higher, and could be better invested in other assets imo