Interest

[Diddy]

Im filling out some loan papers and needed to check and find out how much i owe on my house. In the 18 months since i bought it ive managed to pay down my principal $1,000, all the rest has gone to interest. This is depressing.

[Leroy]

It gets better as time passes, if that helps any.

[AWvsCBsteeeerike3]

i bet in 28.5 years, you'll have it almost entirely paid off.

[UK]

Im filling out some loan papers and needed to check and find out how much i owe on my house. In the 18 months since i bought it ive managed to pay down my principal $1,000, all the rest has gone to interest. This is depressing.

Amortization schedules are a [expletive], for the 1st 75% of the life of the loan, you will be paying more on interest than principle.

Right now, you're paying 90%-95% of that monthly bill on interest.

This is a trick that we do,:

To cut your loan payoff in half, especially early on when it is such a small % of the monthly payment. If you were able to do this (obviously as the interest % decreases and the principal % increase, it becomes a larger monthly payment over time), it would cut your 30 yr. loan in half.

Make your regular payment plus next month's principal and on the btm left line write "payment plus additional principal"

[Leroy]

We pay $45 over and that is knocking a few years at the end.

[Arthur Dent]

What kind of loan do you have? If it's a standard 30 year loan, your payments will go something like this (although the actual numbers depend on your interest rate):



But if you've only paid off $1000 in 18 months, you either have a different loan or a very inexpensive house.

[ghostrunner]

It sucks. We've paid about $7000 of principal over the last 4 ½ years.

[TheoSqua]

They really suck on retail lines of credit.

I had a best buy card where i'd pay $75/month and only like $10 of that would go to the principle. I forget the exact numbers (i think i have a rant on it somewhere around here) but it was asinine how little of a minimum payment goes to actual principle. It would take something along the lines of 25 years to pay off a card via minimum payments, and you'd end up paying like 8 times the amount of the balance.

[Jocephus]

i got a $2.75 interest check from my stocks a couple days ago!

gonna cash that and live it up!

[Diddy]

We pay $45 over and that is knocking a few years at the end.

I started doing that a few months ago, my truck will be paid off in march so im planning on spending that money on my mortgage payment instead of getting a new truck and trying to get alittle ahead. I know how it works with paying mostly intereest up front, its just kind of dishartening actually seeing the numbers on paper.