Mortgage Acceleration
A client is making monthly payments of $741 on a mortgage of $100,000 at 7.5%. How much time would the term be reduced if they added one additional payment per year?
Data Entry
Use the following values for the prompts:
Prompt 
Value 

Calculation Type 
Loan 

Calculate 
Number of Years 

Loan Value 
100,000 

Interest Rate 
7.5 

Type of Payment 
Level Payments 

Payments per Year 
12 

Payment Amount 
741 




Annual Increase in Payment 
End of Period 

Balloon Payment 
0 
The client currently has 23.4166 years left to pay.
Change the # of Payments/Year to 13
The # of Years calculates to be 19.3077, a reduction of just over 4 years.
Note:  This is only an estimation of the effects of an additional payment. Because the payments by TRAK are calculated by equally spreading out each payment throughout the year, and this may not be what actually occurs, the actual results may vary. 