I recently began a 30-year fixed rate mortgage on my new house on April of 2020. The maturity date for this mortgage was then 04/01/2050. In their website, they had an amortization schedule with adjusted payments page wherein you can enter hypothetical principal-only payments and see how that affects the maturity date. In this page, I entered $7500 one time payments once a year to see what that would do, since I was to receive this sum this year from tax refund and work-related bonuses.
It was very exciting to see that if I paid ONE principal-only payment of $7500 once a year, my maturity date will drop from 04/01/2050 to 04/01/2035. That is reducing my loan down by 15 years! I was excited about this and did this last week. Now here are my questions:
- Since a $7500 payment once a year drops 15 years in my loan life, does this not mean that for each $7500 payment, my maturity date should drop by 1 year? I am usually very good at math but every time I try to find this, my brain does the static no-signal image in my head.
- If this is true, my maturity date right now should be showing as 04/01/2049, shouldn't it? Why do I still see my maturity date as 04/01/2050?
- I don't see the page where I was able to calculate hypothetical scenarios anymore. Is it possible that the mortgage company has decided to penalize additional principal only payments with interests as well, and hence retaining my maturity date as the same, since I technically still owe the interest for this principal-only payment?
- My loan is a 3.25% FHA loan in the US with no special circumstances. Shouldn't this mean that there should be no penalties on paying the loan off early and that principal-only payments shouldn't be charged interest? Or should I call and yell at the lender to find out what is going on here?
I am confused and worried that I just threw away $7500 at this loan for it to do nothing for me. Any assistance will be appreciated.