Principal payment

Pony4her · ‎01-12-2025

@Kforce wrote:
@Pony4her wrote:
Owe $45k
Cash on hand now, $10k to go towards prin.
Trade in value $26k
By April 2025, I'll have an additional $12k saved = am I safe to trade in April?

Start: 45000
Rate: 15.250 %
Pmt : 946.00

Payment Principal Interest Balance yyyy/mm #
---------------------------------------------------------------------
45000 2025 1 0 start
946.00 374.12 571.88 44625.88 2025 1 1
10,000 10,000 0 34645.88 2025 2 1 End Jan (reg +10k)
946.00 505.72 440.28 34139.28 2025 3 2
946.00 512.15 433.85 33627.13 2025 4 3
946.00 518.66 427.34 33108.47 2025 5 4 April after pmt
--------------------------------------------------------------------
Remaining Balance 33108.47 April with 10k extra in Jan

946.00 525.25 420.75 32582.75 2025 5 5 May
946.00 531.93 414.07 32050.82 2025 6 6
946.00 538.69 407.31 31512.13 2025 7 7
946.00 545.53 400.47 30966.60 2025 8 8
946.00 552.47 393.53 30414.13 2025 9 9
946.00 559.49 386.51 29854.64 2025 10 10 Oct
---------------------------------------------------------------------

This gives your balance monthly with a 10k extra payment this month.
Depending on real trade in value and your extra funds outside the 10k payment,
and exact extra money needed for the fees, tax's, what ever other stuff.

If you have an additional 3k a month going to extra savings + 10k in hand you should be in excellent shape
by April

33k - 26k = -7000 on car April
With 12k in savings you should be able to pay off and pay tax's and lice, etc.
Every month you are paying down the car by ~$500

PS: Putting the 10k extra payment will save money no mater what point in time you
trade in/up. Saving > $130 /mo in interest every month

Should I apply the $10k now (towards principal) and $4k (each month for the next 3 months towards principal) or just wait until April and apply the full $22k towards principal? Thoughts?

Kforce · ‎01-13-2025

@Pony4her wrote:
Should I apply the $10k now (towards principal) and $4k (each month for the next 3 months towards principal)
or just wait until April and apply the full $22k towards principal? Thoughts?

Every $ you pay early saves interest lost.

Therefore it saves money to pay more every month than save it and pay at the end.

However money spent is not there for an emergency or if you change your plan.

By paying all you can this month and again everything you can each up coming month will save you money.

10k now and 4k/mo will save ~$400, pay more save more, pay less save less.

Only advantage to not pay early is to have the money for something else.

My answer would be "Yes", start paying down the loan with extra funds.

Pony4her · ‎01-13-2025

@Kforce wrote:
@Pony4her wrote:
Should I apply the $10k now (towards principal) and $4k (each month for the next 3 months towards principal)
or just wait until April and apply the full $22k towards principal? Thoughts?
Every $ you pay early saves interest lost.
Therefore it saves money to pay more every month than save it and pay at the end.
However money spent is not there for an emergency or if you change your plan.

By paying all you can this month and again everything you can each up coming month will save you money.
10k now and 4k/mo will save ~$400, pay more save more, pay less save less.
Only advantage to not pay early is to have the money for something else.

My answer would be "Yes", start paying down the loan with extra funds.

Thank you for your wisdom; it was greatly appreciated! TY!

Re: Principal payment

Re: Principal payment

Re: Principal payment