Trying to calculate additional payment needed to pay off mortgage early?

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Occasional Contributor

I am supposed to use a function that will calculate what additional monthly payment could be made to pay off the loan in 15 years vs 30. Is this GoalSeek? Solver?

1 Reply

Hi @KScott85 

 

As long as I understand,  it is basically a restructuring of mortgage loan wherein some installments have already been paid.

In this case you first need to calculate outstanding loan balance that is $ 232,970.

The loan is reduced to 15 years (180 months). 51 installments have already been paid therefore revised remaining terms will be 129 (180 minus 51).

Based on the revised terms you can calculate 'Extra Payment' amount using PMT() function

tauqeeracma_0-1630696634686.png

Working file is also attached for your reference.

Please let me know if it works for you.

Thanks

Tauqeer