Home Forums how-to Set up early payoff of mortgage

This topic contains 4 replies, has 2 voices, and was last updated by  darrowk 11 months, 2 weeks ago.

  • Author
    Posts
  • #462

    Blairski
    Participant

    Hello,

    Another thing I am not sure if it is correct. It has to do with home property. What you should see on the screen shot below is my home to be paid off by 2023. I am not sure why the negative value isn’t progressing to zero gradually. I am not paying off $215,376 in the last year. Makes me feel I have input something wrong.

    screenshot of home property early payoff

    Thanks,

    Blair

  • #464

    darrowk
    Participant

    Hi Blair, unfortunately I’m not able to see your screenshot, which makes this hard to diagnose. (Maybe David can help us debug that.)

    Meanwhile, I just did a simple test of a PropertyEvent with early payoff and it seemed to work as expected. The Home Loan went down gradually, then went to zero in the year of the payoff.

    I’m wondering if you have an explicit End Year set on that PropertyEvent? That means the house is being sold in that year, vs. being held indefinitely. (We need to document that better, and I’ve made a note of it.) Try setting End Year to unending if that’s the problem.

    My simple test:

    Start Year: 2008, this is the year the house is purchased
    End Year: unending
    Purchase Price: 250000
    Financed: 80%
    APR: 4%
    Mortgage: 30, need this for amortization even if being payed off early
    Early Payoff Year: 2023

  • #468

    Blairski
    Participant
  • #469

    Blairski
    Participant

    Try the link above to a file hosting site. It worked for me.

    • This reply was modified 11 months, 2 weeks ago by  Blairski.
  • #471

    darrowk
    Participant

    Ok Blair, that worked, I can see your screen now.

    What I’m seeing looks like the sale of a home, not an early payoff. That the Home Property column goes to zero in 2023 means you no longer own the asset. Typically this would happen if you set an End Year on the PropertyEvent, instead of or in addition to an Early Payoff Year. The End Year is used as the year when the property is sold. Try setting End Year to unending if that’s the problem.

    If that doesn’t get you going, the next step would be to send us a screen shot of your input data for that Home event. Also please confirm that early payoff is your intention, because your starting message above says “I am not paying off $215,376 in the last year.” Thanks.

    • This reply was modified 11 months, 2 weeks ago by  darrowk.
    • This reply was modified 11 months, 2 weeks ago by  darrowk.

You must be logged in to reply to this topic.