I've been offered a HELOC modification with the following terms:
Beginning balance $148,148.59,
- Initial rate and term is 1% for 60 months at a pmt of $374.60,
- The 2nd term begins Jan of yr 6, at 2% for 12 months at the pmt of $439.60,
- The 3rd term begins Jan of yr 7, at 3% for 12 months at the pmt of $508.88,
- The 4th term begins Jan of yr 8, at 4% for 396 months at the pmt of $581.85.
Since I have no intention of keeping the house or the mortgage for 40 years;
my question is if I pay an extra $1000 of principal every month for the first 7 years what will my principal balance at the beginning of year 8?
Also, how much interest will I have paid after 7 years.
My guess (purely a guess) is I would reduce principal by $113,352 to $34,796.59. And I will have paid approximately $5000 in interest. I kinda think my interest "guess" is all wet! I hope there is a mathematician out there who can help me understand this. I need to make a (informed) decision by May 1, 2018.