Why You Need a Free Loan Tracking Spreadsheet in Your Life Tool Kit
Did you know that approximately 80% of Americans are in debt with a home mortgage, home equity loan, car loan, student loan, personal loan, or some other type of loan?
Yet many do not know really understand the nuances of principal and interest, what is pre-payment to principal, how to make extra payments, and why it can be good to make pre-payments.
As borrowers, we need to understand and forecast costs over time to make better decisions such as:
• “Can I afford the monthly payment?”
• “How many years earlier can I pay off the loan by making extra pre-payments?”
• “How much money do I save by making extra pre-payments?”
• “I just received a $5,000 bonus at work / or I just inherited $15,000. Should I use it to pay down my home loan?”
• “Should I choose 15-year mortgage or 30-year mortgage with pre-payments?”
• “What will my monthly payments need to be to pay off the loan 5 years early? 10 years early? 15 years early?”
• “Did my bank accidentally give themselves extra interest rather than putting all the pre-payment toward principal?”
This video tutorial will help answer these questions with six examples using a free loan amortization Excel spreadsheet. You can enter your future, present, and/or past loan terms and model different payment scenarios. You can analyze the various costs and benefits to arrive at the best decision for your unique circumstances.
Enjoy. :)
------- Chapter Timestamps (click to jump forward): -----------------------------
0:00 - Intro
0:13 - Most people have loans, so why track them?
0:43 - Example #1: A simple loan amortization calculator
2:19 - Example #2: Extra Payments Reduce Cost & Duration
4:59 - Example #3: Should I use an unexpected windfall to pre-pay my loan
6:46 - Example #4: 15-year vs. various 30-year payment schemes
14:00 - Example #5: Manually tracking payments
15:31 - Example #6: But wait, there's more -- the STANDARD Edition
21:40 - The End
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- Download FREE Edition: github.com/DataResearchLabs/my_loan_tracker/tree/main/download
- Purchase STANDARD Edition: www.etsy.com/shop/DataResearchLabs/
- Help: github.com/DataResearchLabs/my_loan_tracker
- Read this on Medium: mpierce710006.medium.com/a07925ee4e4e
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#mortgate #prepayment #amortization #loan