Christee Amortization Quick Start

Amortization is the process of liquidating or paying down a loan balance – also referred to as the principal balance. Monthly payments are first allocated to interest due, and the remainder reduces the principal balance.

A typical mortgage payment consists of:

(1) Principal and Interest Payment

(2) Mortgage Insurance, where applicable

(3) Monthly deposit for future payment of Property Taxes

(4) Monthly deposit for future payment of Property Insurance

(5) Possible deposit for monthly Condo or Mandatory Homeowners’ Association Fees

It may be advantageous to borrow money based upon a 30-year term and either: (A) Pay additional principal each month or (B) Make a payment based upon a shorter term. Christee will show the effect of making additional principal payments or Christee will tell you how much additional payment is required to pay off the balance in a given period of time.

Prepayment penalties are almost nonexistent in residential loans, so the borrower can develop a strategy for repayment of the loan balance. Of course, the borrower must make the required minimum payment.

There are Only 3 Required Inputs for the Christee Amortization Module

  • 1. Interest Rate. Enter mortgage rate.
  • 2. Beginning Loan Amount.

    Tip: If you are seeking the loan balance of an existing loan. Enter the original loan amount, not the current balance.

  • 3. Mortgage Term. Select loan term form dropdown box.

There are 3 Optional Inputs. NOT required for Christee results.

  • 1. Extra Principal Monthly. Enter extra principal payment to be made per month.

    Tip: Extra principal payment is that amount above required minimum principal and interest.

  • 2. Shorter Term. Enter the term, in years, you wish to pay off the loan. Christee will show the extra payment required to payoff of the loan in a shorter period of time.

    Tip: If you wish to pay off a 30-year mortgage in 20-years, then enter 20 into this field.

    Tip:If you enter both an extra principal payment and shorter term, Christee will calculate based upon the extra principal required to pay off the loan in the desired time.

    Tip: This is a useful tool when planning future financial situations such as retirement. You may want to establish amount of ‘extra principal monthly’ to payoff your mortgage before retirement.

  • 3. Email Address. By entering a valid email address, you have the option to have the PDF report emailed to yourself or another person.

    Tip: If this field is blank then, you may download the PDF report.

    Tip: Make sure you hit the ‘submit’ button after entering an email address.

Examples of Amortization

A $100,000 loan at 3% for 30 years requires a monthly payment of $421.60. After 7 years, approximately 50% of the monthly payment is applied to reducing the principal loan balance. Interest over the life of the loan is about $51,777.

The same $100,000 loan at 5% for 30 years, requires a monthly payment of $536.82. After 16 years, approximately 50% of the payment will be applied to principal loan balance – nine more years compared to a 3% rate. Interest over the life of the loan is about $93,255, or $41,488 more interest than compared to a 3% rate.

Should you borrow money based a 30-year term and make the payment based upon a 15-year term, you will save interest while only being obligated to the 30-year payment. This optional allows you to not only save interest, but protects you against unforeseen financial circumstances.

We hope you enjoy your AskChristee experience!

Results will be displayed in your browser. Additional detail is available in the PDF file. Please review results with a recommended AskChristee Agent and Lender.

See the Resources tab for more Information. Visit Video tab for demonstration and greater insight.